d:\scanned\spdint.

tif Page 1

Mechanical Engineering C6 1ZA36 1

An Introduction to VALUE ANALYSIS AND VALUE ENGINEERING for Industries, Services, and Governmental Agencies C

Thomas J. Snodgrass Faculty Associate Department of Engineering Professional Development University of Wisconsin-Madison Ronald E. Thomson Lecturer Department of Engineering Mechanics University of Wisconsin-Madison

Prepared under the supervision of Department of Engineering Professional Development University of Wisconsin-Madison University of Wisconsin-Extension

L I L E > ( Jndependent Study

Copyright O 1990 by Board of Regents of the University of Wisconsin System All Rights Reserved
Produced by the University of Wisconsin-Extension Manufactured in the United States of America At University of Wisconsin-Extension, discrimination in employment and education on the basis of age, race, color, creed or religion, national origin, ancestry, sex, sexual orientation, veterans' status, arrest or conviction record, or qualified disability, including AIDS, is prohibited. Direct policy inquiries to Affirmative Action Programs, 432 North Lake Street, Madison, Wisconsin 53706.

CONTENTS
Introduction . . . . . . . . . How to Do the Work of the Course

. . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .

1 2

SECTION 1 AN ORGANIZED APPROACH TO GOOD VALUE 1 2 3 4 5 6 7 8 9 10 11

. Why Value Engineering? . . . . . . . The Value Analysis Job Plan Information Gathering . . . . . . Identifying Functions . . . . . . . Technical FAST Diagramming . . . Technical FAST Case Histories . . . TaskFAST . . . . . . . . . . . Function Costs . . . . . . . . . Function Attitudes and Value Mismatch Function Analysis and Creativity . . Evaluation . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . .

. . . . .

. . . . .

. . . . .

. . . . .

. . . . .

. . . . .

. . . . .

. . . . .

. . . . .

. . . . . ~ .. . 1. . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . .
. . . . . . . . . . . . . .

7 9 . 14 . 16 . 23 . 32 . 35 . 40 . 55 . 58 . 61

SECTION 2 THE MANAGEMENT OF VALUE ANALYSIS ACTNITIES 12 13 14 15 The Role of the Engineering Value Specialist . . . . Interaction of theorganization withValueEngineering Management's Role in Value Engineering . . . . . . Value Engineering as a Career-Some Do's and Don'ts Request for Final Examination . . . Request for Transcript . . . . . . . Request for Certificate of Completion

. . . . . . . . 73 . . . . . . . . 77

. . . . . . . . 79 . . . . . . . . 81

. . . . . . . . . . . . . . . 84a . . . . . . . . . . . . . . . 84b . . . . . . . . . . . . . . . 84c

INTRODUCTION
Value analysis is a relatively new system which traces its origins back to the late i? Miles, the author of Teclzniques of Value 1940's. The concept was conceived by ~D. Analysis and Engineering. It is a system developed for the elimination of unnecessary costs. This course in value analysis has four major objectives. It is designed to hggp you "7 understand the unique techniques of value analysis. learn the value analysis job plan. appreciate the major factors in value analysis and understand the role of the value specialist in relation to the rest of an organization.

HOW TO DO THE WORK OF THE COURSE

This is the Study Guide for Mechanical Engineering C612-A361, An Introduction to Value Analysis and Value Engineering for Industries, Services, and Governmental Agencies. It is designed to provide you with the instruction and information given in a classroom situation, with reading and written assignments and comments by the instructor. The course is divided into fifteen units.

**.

TEXTBOOKS Function Analysis: The Stepping Stones to Good Value,Thomas J . Snodgrass and Muthiah Kasi, 1986, The University of Wisconsin System, Madison, Wisconsin.
Excerpts @om: "Tecltniques of Value Analysis and Engineering," L. D. Miles. From the 2nd ed., 1972, originally published by McGraw-Hill, New York.

MATERIALS A Mutual No. 20 three-hole punch, or its current variation, is supplied for you to use in the course as a concrete example for value analysis. It provides a project which gives you an opportunity to actually put into practice the various techniques presented in the course. A forms packet of special forms required for some of the written assignments is supplied with this Study Guide. You will need to supply paper, pen or pencil, erasers, scratch paper, and so forth for your use. COURSE ORGANIZATION Each unit includes a textbook reading assignment, study notes in this Study Guide that amplifhd,explain the reading assignment in the textbooks, and a written assignment. Write your answers to the written assignment neatly, beginning on one of the special first sheets provided. Continue your assignment on additional paper as needed. Be sure your name, mailing address, the course number, course name, and unit number are filled in on the first sheet. Your name anpthe course and unit numbers should also be on each added sheet of paper. Then put all the sheets together and insert them in one of the special envelopes provided by UW-Extension. Fill in the blanks on the envelope, put postage on it, and mail it. You can now proceed with the next unit in the same manner. Meanwhile your written assignment will be graded by your course instructor who will also provide written comment; as appropriate, on your work. After your corrected assignment has been returned to you, check it carefully and use it to guide any review study you may need. For several units, you must wait until the graded assignment is returned before proceeding to the next written assignment. After you have completed all the written assignments, request the final examination. You will find the directions for the final examination at the back of this Study Guide.

How to Do the Work of the Course

You will have completed the course when you have earned a satisfactory grade on each of the written assignments and the final examination. I f you would then like a Certificate of Completion, mail in the form at the back of this Study Guide. If you have difficulty understanding some concepts or answering questions, please feel free to ask your instructor for help. The more specific your question is, the better your instructor can respond. Send any questions you may have in the same envelope with your written assignment. We are well aware that individuils may have special question3 not answered in the reading or difficulties with the written assignments. You may confer directly with the instructor using the DAIN telephone line. In order to use this line, your instructor must call you. Therefore, if you wish a telephone conference at any point during the course, inform the instructor on a written assignment sheet. Include your telephone number and a time when it would be con enient for the instructor to call you. Do not hesitate to ask for assistance.

HOW TO LEARN
Learning is an ordinary, common, everyday thing. Everybody does it ahqost all the time. It is impossible to stop learning. There is nothing strange, unusual, or%ilficult about it, even though, quite honestly, no one really understands how or why it happens. Each person-a student in a class as well as one engaged in self-study-learns as an individual. And most of the leaming that everyone does takes place outside of educational institutions. To study simply means to direct your learning toward a particular goal. Here are some general guidelines for studying:
1. Set up a study schedule to suit your situation. Don't make your schedule too demanding or too rigid, but don't be too lenient with yourself either. 2. Choose a time and place that is convenient and reasonably quiet. Make a choice that will leave you as free from outside distractions as possible-perhaps late at night or early in the morning, at home or at a local library. 3. Organize all your study materials and have them at hand before you begin. Always include scratch paper and a pencil. 4. Begin your study of each unit by a quick reading of the entire unit-both the Study Guide material and the reading assignment. Don't worry about detail ox,, about getting everything to make sense this first time. Then read the unit more thoroughly, studying and learning more detail and thinking things through. Get all the information you can from drawings, charts, and things you find interesting, important, or difficult, Use the scratch paper to keep track of questions that come to mind, to outline what you're learning, or to make your own notes. After this second reading, you'll probably want to go back over all or part of the unit, perhaps several times. 5. When you are ready, carefully and thoughtfully complete the written assignment. You may want to work it out on scratch paper first. Keep your final written work neat and legible. It's a courtesy to your instructor and your work will be more useful to you in reviewing the course. 6. Before you start each unit, you'll probably want to give earlier units a quick review. Note that many of the words and terms introduced in the course have p m i s e meaning. An important part of your study consists of enlarging your vocabulary with these new words.

How to Do the Work of the Course

7. Relate what you're learning to anything you can. The world is full of products and
services. As you learn value analysis techniques, make a mental game of applying them to things you encounter. What was wrong with a product or service that " disappointed you? How could its value be increased? Perhaps you could start a list of things which represent good value to you and a list of things which represent poor value. In short, keep your eyes open and your mind active. The more you can observe, see, read, discuss, or think through, the better you will learn not just the material in this course but also a lot more about value and value analysis.

COURSE GRADING AND GRADE To learn value analysis you must not only completely understand what it is, but you must also develop the ability to use the system and techniques presented by the authors of the textbooks and this Study Guide. Your written assignment grades will reflect how well you comprehend and can apply the subject matter. We understand that you may not always agree with what is presented. If so, your answers should first demonstrate that you have learned the course material before you offer other comments. Otherwise, ""-in grading, it may not be possible to distinguish between a wrong answer (lack of understanding) and a difference of opinion. The final course grade will be based half on the average of the written assignment grades and half on the course final examination grade. You must earn a satisfactory grade (70 or more on a scale of 100) not only for each assignment but also the final examination to earn a passing grade in the course.

AN ORGANIZED APPROACH TO GOOD VALUE

*v?

\*

Section 1 of this course, Units 1 through 11, covers the techniques and tools of the relatively new discipline called value analysis. The need for this discipline arises out of changing economic conditions and changing customer and consumer attitudes. L. D. Miles, author of Techniques o f Value Analysis and Engineering, spe'aks of value analysis as a system. That is, it is an "organized or established procedure." A job plan (Unit 2) provides the format for the system. The tools of the system (Units 3 through 11) allow the value specialist, as an individual or directing a team, to shape and work data to determine that combination which warrants the term good value. The use offunctions to define products or services is a unique part of the value analysis system. The book Function Analysis: The Stepping Stones to Good Value, by Snodgrass and Kasi, presents the latest techniques, including those used in customer-oriented value engineering.

WHY VALUE ENGINEERING?

A drive through older communities reveals many vacant factory buildings. The reasons can be many, but leading the list are factors which involve the word value. Today we are aware of world competition that threatens some of our major industries, and again, the problem appears to be that the foreign makes represent better value in the eyes of the buyer. This course in value aj)alysis/engineering describes a system whose objective is to reverse this situation and assure good value products and services. It covers the organized approach and techniques of value analysislengineering and discusses how various individuals and parts of organizations affect value. The training of value specialists and the initiation of value programs is explored. 4 .> Lawrence D. Miles developed the initial value analysis concept and directed the early training effort. The excerpts from his Tecltniques of Value Analysis and Engineering, 2nd ed, furnish an excellent base reference to the main text you will be using, Function Analysis: The Stepping Stones to Good Value, by Srkodgrass and Kasi. It is hoped that you will apply the knowledge gained in this course to assure good value products and services in the future.

READING ASSIGNMENT Excerpts,from: "Techniquesof Value Analysis and Engineering," L. D. Miles Preface Chapter 1, Sections 1-1 through 1-4 and Sections 1-8 through 1-10 Function Analysis: The Stepping Stones to Good Value, Snodgrass and Kasi Forward and Preface, pages x-xii

STUDY NOTES
The use of the excerpts from Larry Miles' Techniques of ValueAnalysis and Engineering and the newer book, Function Analysis: The Stepping Stones to Good Value by Snodgrass and Kasi, provide an excellent bridge from the beginning of value analysis to the present period. Miles describes this relationship very well in the preface he wrote for Function Analysis: The Stepping Stones to Good Value. Several important points are made i n the Miles Excerpts, Chapter 1, concerning value analysis and the value analyst or value specialist. The first important concept is that value analysis is a problem-solving system that has as its objective the identification of unnecessary cost. The concept of the "coaching of champions" is another significant factor in value analysis. Miles also discusses four types of thinking (evaluating information, penetrating analysis, creative mental activity, and judgment-type mental activity) that are utilized in the problem-solving technique called value analysis. *
*%

* The term value analysis is often replaced by value engineering, value assurance, value management, or other synonyms. It may also be written as VA, VE, or VA/VE.

Unit 1

A very significant part of value is established by the customer. Today the phrase "voice of the customer" is heard more and more in boardrooms and in design sessions. As Miles points out, a product must meet the customer's expectations in order to be acc6ptable. A product of value must also meet requirements imposed by government bodies that reflect concerns such as those related to safety or the environment. And, of course, the product must be manufactured at a cost that generates healthy profits when sold at a competitive price. You should be able to discuss various aspects of value and various approaches to increasing value. The obstacles to achieving and maintaining value in products or services relate to time shortages, lack of measuring, human factors, and technical changes. Higher costs than are necessary for a good value product can be caused by every part of the organization. You have encountered many of these obstacles; just think about industrial examples with which you are familiar. An important consideration is the effect of value analysis on the productivity of ' a n organization. Numerous examples can be cited that show that value analysis provided more of what customers wanted, and at a lower manufacturing cost, because the VA *%,processmade an organization work as an integrated whole rather than in isolated parts. Note also that public services, such as those provided by a school system, can benefit from value analysis. Many have higher budgets than necessary due to incomplete understanding of the voters' desires and the students' needs. Miles presents five key questions in Section 1-10 that must be asked and answered in order to select a value analysis project and prepare individuals' minds to accept value analysis techniques. You should be able to list the five questions and give an example for each.

WRITTEN ASSIGNMENT 1
Complete the following work and send it to the University of Wisconsin-Extension for grading. One of the printed first sheets supplied by us should be carefully filled in and used as the first page of each of your written assignments. We also furnish printed envelopes that should be used for mailing in your written assignments. Please use a separate envelope for each assignment. See complete instructions for preparing your written assignment on page 2 of this Study Guide.
a ,

Wh&s value analysis trying to do? What is the definition for value analysis given by L. Miles? Why is value analysis needed? What are four roadblocks mentioned d t h e assignment? In what areas of an organization can causes for poor value be found? What are the four types of mental activity involved in value analysis? What is the meaning of "appropriate performance" as used in value engineering? What do the authors say is necessary to obtain the best value? 9. What are the three major aspects of value? 10. Write a short essay telling your instructor what exposure you have had to VA/VE prior to this course. why you are taking this course (or what you hope to learn). what future plans you have that include value analysis.
1. 2. 3. 4. 5. 6. 7. 8.

THE VALUE ANALYSIS JOB PLAN

Advances in the communication fields and the aerospace industry have emphasized the importance of good systems. According to Webster, such a system could be defined as a set of rules or principles arranged in a logical order linking all of the various parts. We all are aware that the absence or failure of any one part of a system can cause severe problems and even failure n the entire process or product. Moreover, upon reflection, we realize that most products and services in operation today have no overall system (set of procedures) to assure that they meet the criteria of good value. That is a significant reason why so many of today's products aren't good values. This unit discusses the value analysis job plan-the essential steps in the sys)em which ' : enable us to achieve good value in our products, processes, and services.

c"

READING ASSIGNMENT Exceiptsfiom: "Techniques of Value Analysis and Engi~zeering,"L. D. Miles Chapter 5, Section 5-3 STUDY NOTES We in business today are confronted by a paradox. Never have we had so much information, talent, or technology available for solving problems. Yet we are failing in our task to find better solutions. Our companies are struggling in the face of more capable competitors, and even, as we are seeing all around us, just closing their doors. In most cases the essential information and talent are available to us. Our challenge is to learn how to effectively access and utilize these resources to secure better solutions. Specifically we must learn how to gather, understand, analyze, and utilize the information to develop solutions as good as or better than our competition. Then we must act decisively on our findings. To assure continued success, this must be an a, integral part of how we run our businesses. We must adopt methods that utilize the knowledge and talent available to our organizations to identify these better answers. Then we must implement these answers. Moreover, to assure that this process continues we must be certain that we function in a cooperative supportive environment where the risk of personal loss is minimized. We want to make our company a "winner," thereby making all of us winners. Value analysis can help us do just that.

What Is Value Analysis? Value analysis enables us to secure the winning answers. VA is the organized, disciplined, problem-solving system that's necessary to enable us
to efficiently bring information and resources together and solve difficult problems to our company's advantage by giving products and services of really "good value" to everybody.

Good Value. It is essential in today's volatile, competitive market to provide good value in our products, processes, and services. But we must provide this good value not only to our customers but also to ourselves. Really good value describes a product,

Unit 2

OVERHEAD

MATERIALS

Figure 2-1 The Goal-Good

Value Balance

process, or service which has high acceptance by the customer at a price he is willing to pay while producing good-to-highprofits for the supplier. When we cease providing either side of this good value balance, our companies will be in trouble. Very seldom does good value just happen-we must work to achieve it.

Roadblocks to Good Value. It is essential throughout the value analysis process that we be sensitive to roadblocks (the barriers to achieving good value) and use the VA
system to help overcome these roadblocks. There are four significant roadblocks that we must address to assure that our quest for good value is successful:
1. The difficulty of securing the essential information relating the customer's attitudes to the producer's costs. Vque analysis information gathering and analyzing techniques are effective in overbbming this obstacle. 2. The lack of new ideas. Value analysis is effective in providing new and valuable insights for problem solving through techniques for getting i ormation and ideas from expert sources plus the synergy achieved with team d namics and with specific creativity techniques. 3. Honest wrong beliefs-those things that we know to be absolutely true, but are not true. VA's pursuit and use of high quality information and its structured zero-personalrisk team approach, in which everything is questioned, are significant in overcoming this obstacle. 4. Lack of time. VA demands hard work, attention to details, and a commitment of time-all with the active support of management. With this commitment, the VA problemsolving system is still the fastest, most efficient way of achieving the good value solutions we must have for everyone to win.

Unit 2

11

Tools of Value Analysis. VA deliberately uses a group of techniques, approaches, and actions to assure good value products, services, and systems. First, VA uses nine specific techniques and concepts:
1. Job Plan 2. Team Dynamics 3. Value Engineering Specialist 4. Computer Cost and Attitude Support 5. Analytical Function Language and FAST 6. Function Cost Analysis 7. Function Attitude Analysis 8. Creating on Function 9. Value Standard (PAR) Each of these will be covered in detail d & n g this course. Second, it is recognized that VA initially disrupts an organization because it demands change. Once this is accepted, it is possible to penetrate to really good value. VA usually uses a multi-discipline group from within an organization and impels that -1 group to work toward common goals to achieve good value. ? Third, VA can overcome the obstacles to good value. The essential information will be obtained. New ideas will be generated. Wrong beliefs will be identified. The high quality of the solutions will justify the time and resources invested because you will know that you have pinpointed just those solutions that will secure the good value you seek. Finally, one of the most convincing reasons for VA is its impressive record of implemented cost reductions. Implemented savings virtually always range from 10% to 20%,and often as high as 40%.Very often, spin-offs to related products and services increase these savings many times over. Documented studies show that the dollars of cost for carrying out a VA study are returned by a multiple of 6 to 10.
<

Mind Tuning. Mind tuning is a very powerful technique discussed in the Miles Excerpts for this unit. It is essential that we determine as precisely as possible exactly what problem we are trying to solve. Carefully read this section. The Value Analysis Approach. Value analysis is an organized problem solving system consisting of five distinct steps which encompass the entire study: 1. Information Phase '.rc r. 2. Creativity Phase 3. Evaluation Phase 4. Planning Phase 5. Implementation Phase These five steps make up the VA job plan and each must be thoroughly completed before proceeding to the next step. It is the discipline of the job plan, and the questions and measures within each step, that assures a progressive, accurate, efficient process.
THE INFORMATION PHASE The Information Phase of the job plan is the most complex and time consuming of the entire value analysis study-often consuming about 50%of the time. Ln this step we answer the questions: 1. What does it do? 2. What does it cost? 3. What are the customers' reactions?

12

Unit 2

4. Where is the greatest opportunity for value improvement? In order to satisfactorily answer these questions we must
gather all of the relevant information about the project. gather similar information about competitors' products. gather user attitudes about the products. develop analytical language (determine functions). develop the FAST diagram. determine function/cost relationships (allocate costs to functions). determine function/attitude relationships (iden* faults and determine customer acceptance). determine the functions with the greatest opportunity of assuring good value. It is in the Information Phase that we first carefully examine the two sides of the value relationship-customer attitudes and producer costs. For high customer acceptance, it is important that we eliminate all the non-tolerated faults and concentrate on giving the customer a product that gives him the performance that he wants at a price "*-that he is willing to pay. For high producer value, we must eliminate all of the unnecessary cost from the product so that we have one that assures us of good-to-high profits. Value analysis has the goal of achieving both these value requirements. That is, the goal of value analysis is good value.
e-

Good value is achieved when the product, process, or service 1) has high acceptance by the customer (or user) and 2) assures reasonable or high profits to the producing organization.

THE CREATIVITY PHASE Value analysis uses creativity techniques to identify all the possible ways to achieve or help to achieve functions. Notice that we are attempting only to identify possible solutions. We do not evaluate or judge the creative possibilities until the next step of the job plan.
Creativity is bringing into being or developing something that is new to the creator&).
It is reoogplred that two factors embody this process:

1. The knowledge bits required to deal with the task at hand. 2. The mental ability to readily join these diverse bits of knowledge into a potential solution. The VA process, through team selectidh and the Information Phase, has enabled us to achieve the first of these factors, and the techniques used in the Creativity Phase enhances the second. Value analysis employs the brainstorming technique developed in the 1960's by Alex Osborn as the actual working activity to generate all of the ideas related to the candidate functions identified in the analysis step of the Information Phase.
THE EVALUATION PHASE
The objective of the Evaluation Phase of value analysis is to sift through (screen) all the ideas generated by the creativity activity and develop the value standard.

The value standard is the single best combination of all the generated ideas that yields the implementable solution with the greatest value.

Unit 2 Value analysis utilizes a four-step screening process to methodically evaluate the generated ideas. Each of the screens helps us identify the best implementable ideas for improving the value.
THE PLANNING PHASE Good planning is essential for the entire VA study, but in this specific step of the job plan we must take the value standard developed in the Evaluation Phase and develop it in detail. Once this is completed, we must prepare arfd. present our recomrneudations for management approval. Here are the steps of the Planning Phase procedure.

13

1. Research and gather information that is needed to substantiate the assumptions made in the Evaluation Phase. 2. Consult with specialists about impr ving or combining ideas. 3. Work closely with vendors. Solici their ideas, encourage their assistance, and use and pay for their help. 4. Develop implementation plans. 5. Anticipate potential problems and roadblocks. 4p3 6. Analyze the risks. 7. Prepare and present results of the value study to the decision makers with the intent to obtain their approval to proceed with implementation.

<

THE IMPLEMENTATION PHASE A successful value study can happen only if the recommendations are implemented. It means absolutely nothing to identify fabulous cost savings if these cost savings are never actually realized in the marketplace. The entire value study must be directed to achieving implementableresults. If this is done, and if you have developed a workable implementationplan based on acceptable risks with worthwhile objectives, then all that is needed is to activate that plan. Since very few plans are perfect, the team should closely monitor the actual implementation to assure that tactical problems are solved and the objectives are pursued. Keep management apprised of the progress of implementation-both good and bad.

WRITTEN ASSIGNMENT 2
See the instructions for preparing your written assignment on page 2 of this Study Guide. '*.* u

1. What is "good value?"

What is the problem solving system of value analysis? Which parts of the system does Mr. Miles consider the most important? Describe what is done in the Information Phase of the job plan. Give an example from your experience of each of the four categories of roadblocks. 6. What is the output of the information step? 7. What factors maximize a person's creativity? 8. What is the output of the creativity step? 9. Explain what the value analysis approach is. 10. For a value specialist working alone on a problem, identify how many peopk are required for each step of the job plan. 11. What should be the underlying objective of the value study?
2. 3. 4. 5.

INFORMATION GATHERING
Value analysis has been attempted in numerous situations in which the results have been, at the least, disappointing and have often been judged as out-and-out failures. When the reasons for this are analyzed, a high percentage relate to two factors: lack of management participation, and inadequate or poor information gathering. This unit deals with the second factor, inadequate or poor information gathering. The first factor, lack of management participation, will be discussed in Unit 14.
*'Cr

READING ASSIGNMENT Excerptsfiom: "Techniques of Value Analysis and Engineering," L. D. Miles Chapter 8, Introduction and Sections 8-1 through 8-3
Function Analysis: The Stepping Stones to Good Value, Snodgrass and Kasi Chapter 13, Sections 13.1-13.5 STUDY NOTES Obtaining the proper information is a major challenge to the value specialist. Complete understanding of Section 8-1 in the Miles Excerpts can eliminate many problems. As you study the six types of generalities, think of six different types of generalities that relate to your particular organization or to an organization with which you formerly worked. Specific information often provides the springboard for major cost improvements. Costs are a key type of information. When a dollar sign is attached to afunction (verblnoun), it takes on a significance, or cost visibility. It is important that the necessary cok @ available and in the proper form. Miles outlines the types of costs needed along with some of the problems involved. Types of costs and cost practices are as extensive as the organization using them. What is or is not included in the cost figure for material or labor must be clearly understood. Often, cost specialists want onlgmaterial and labor cost totals to be used in a value analysis. Since overhead costs are not included, this is seldom the type of cost with which management is acquainted. Where management cost figures include overhead, cost figures used in the value analysis study should also include overhead. Judgments as to what can or c m o t be done in the areas of overhead cost can be made as the job plan progresses. It is important to realize that cost is the important factor indecision-making. Some types of cost are considered at every phase of a product or service. Study carefully the five examples given in the Miles Excerpts. Customer attitudes are now recognized as of equal importance to costs and must be part of the information data available for the value engineering study. It is not unusual when seeking customer/user attitudes to have someone in the organization say, "I know what the customer wants better than the customer." Assuming for the

Unit 3

15

moment that there is truth in the statement, at the very least the information that this individual has should be converted into a usable format similar to that of the a priori method described in Function Analysis: Stepping Stones to Good Value, pages 225229. Read this section carefully to understand how the data was entered, judgments were made, and scores were determined. True value judgments come directly from the "customer." But there are different levels of customers in the path from the producer to the ultimate- customer or user. Sections 13.4 and 13.5 review various steps and market research techiques available. Each technique has certain advantages and disadvantages. Note these carefully. Study Figures 13.7 through 13.12 to get a feel of the types of data obtained. Constant effort is required to find the best sources of information. The answers to questions must be sought from many sources-the engineer in one case, the salesperson in another, management policy in a d. Several examples are considered in the Miles Excerpts. Here is another opport 'ty for you to list a group of questions that might come up in your organization. Then determine the best sources for obtaining answers to these questions.

WRITTEN ASSIGNMENT 3 See the instructions for preparing your written assignment on page 2 of this Study Guide.

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

What are the important factors in decision making? Why do many VA projects fail to achieve their objectives? Name six generalities that often stop thinking in your organization. Name three ways to end action blocking that are covered in this chapter. What is the VA definition of a roadblock? Name six difficulties mentioned in this unit that are often encountered in getting meaningful costs. Why is it important to obtain customer attitudes? What specific types of data are obtained in a market research? What does this unit say about how we can secure good information? Miles gives five specific examples of situations where meaningful costs are not available. Select three of the examples and discuss ways of obtaining more mean-'*" ingful costs for each.

IDENTIFYING FUNCTIONS
The techniques of value analysis can be used to improve the value of our decisions for almost anything we do. In business and industry, value analysis has been used to improve business services, manufacturing processes, and industrial and consumer products. In the following units of this course, we will be studying the techniques of value analysis and applying these techniques to the design of a consumer product- the Mutual No. 20 three-hole punch. Although our approach to the subject will be product oriented, keep in mind that the same techniques can be adapted to many other kinds of problems and situations. Many problem solvers (including engineers and architects) when first learning about value analysis say, "I already do that in my work when I solve problems. What is different about value analysis?" The response to the question is twofold. First, a successful problem solver must be good at gatherillg pertinent information and developing, evaluating, and implementing solutions; value analysis encompasses approaches and techniques for improved understanding and application of these skills. Second, value analysis includes a unique and powerful method, called function analysis, for solving problems. Function analysis results in a clear statement of what a product, process, etc., does rather than how it is produced. It helps us focus on the goal rather than the production process; it gives us greater insight and an essential perspective for arriving at good value solutions to our problems.

READING ASSIGNMENT Function Analysis: The Stepping Stones to Good Value, Snodgrass and Kasi Chapters 1 and 2

STUD%? WTES
The most powerful tool of value analysis is function analysis. In order for us to get the most out of value analysis it is absolutely necessary that we clearly understand functions and are able to find the correct f ctions relating to the problems we are trying to solve. Often beginning VA (value lalysis) practitioners think that it is only necessary to capture the general idea of the performance action involved; often they are too lazy to exert the necessary effort to correctly identify all of the functions. The student must be prepared to spend a great deal of time on this unit and on Unit 5 to establish a soundfohdation for the remainder of this course. The reading assignment for this unit discusses the reasons for using functions to better understand the problem we hope to solve. The book also discusses that function analysis is often misunderstood and resisted by people. It is essential that you clearly understand what a function is.

;iP

A function is a required performance action described by two words, a verb (active) and a noun (measurable), without identifying a specific method of performing that action.

Unit 4

17

Read and understand the definition and the words (see following) used in the definition. required + It's something that is necessary to satisfy the user or customer. 0 performance action + "What it does," not "what does it." 0 two words, a verb and a noun + Exactly two words, a noun plus a verb. 0 active verb + Whenever possible use an active verb; this enhances clarity and preciseness of the action to be performed. Try to avoid vague, passive verbs such as "provide." measurable noun + We want to use measurable nouns so that we can establish exactly what amount satisfies the requirement. Receive Torque* is a function with a measurable noun; we can specify precisely what level of torque is to be received-e.g., 50 foot-pounds. Enhance Appearance, on the other hand, is a function with a noun that has no apdarent definite measure; we cannot precisely specify what level of "appearance" is acceptable. 0 specific method + Don't use names of components and elements that are part of the solution. Functions such as Retain Pin are unacceptable. . *1 Ir A common approach to identify most of the functions for a product is to list all of the components for the product. Then determine which functions each component performs. Interpret the word component broadly. Although it usually refers to a product part, it may also indicate an operation or other cliaracteristic feature. Following is an example of the function identification process for an incandescent light bulb. Look at the bulb and clearly understand why each of the functions identified with the specific associated components is appropriate. See Figure 4-1. It is apparent that one of the functions of a light bulb is to Emit Light, but that is not all it does. It also has the function Generate Heat. (We may not want the heat, but Generate Heat is a significant function of the light bulb which the designer must accommodate.) Some specialty light bulbs might also have other functions such as Project Color. In summary, we can start to describe a light bulb by what it does. This will lead to seeing it from a different and very useful viewpoint. It is very important that we describe the functions of products as clearly and concisely as possible. Before we define the remaining functions of the light bulb, we will ask you to review the function definition on the previous page and convince yourself that the three functions for light bulbs above satisfy it in all respects. 9 % Now we will proceed with determining the function of each of the components. What is the function of the glass bulb? (Stop reading and take a few minutes to try to determine it yourself.) Here are some possibilities. Its function could be to Contain Gases (specifically, inert gases). But why use an inert gas? For one thing, to insure that oxygen is not in the vicinity of the filament when it is heated; this prevents oxidation of the filament. Hence the glass bulb also has the function of Prevent Oxidation (of the filament) which leads to Exclude Oxygen. Although any of these functions-Contain Gases, Prevent Oxidation, or Exclude Oxygen-is accurate, we will ultimately pick the one that seems the most descriptive of the function that the glass bulb performs. QUESTION: Parts can have more than one function. Does the glass bulb have any other functions?

* Functions will generally be in italics with initial letters capitalized when they appear in the body of the text.

Unit 4

GLASS BULB

INERT GASES SUPPORT WIRES

HEAT DEFLECTING DISK

LEAD-IN WIRES GLASS STEM

INSULATION

CENTER CONTACT

Figure 4-1. Light Bulb and Components Now let's look at a couple of other components. One function of the filament is to Emit Light. But in order to do this it must convert electrical energy to luminous energy. Therefore Convert Energy is a function, and some of the energy will Generate Heat. As a result, the filament does these three things: Emit Light, Convert Energy, and Generate Heat. Qae function of the center contact is to make electrical contact with an available energy 2 o e e ; specifically, it Receives Current. It also Conducts Current. A summary of functions of the light bulb and each of its components is given in Table 4-1. Notice that we have also included functions that are the result of specific operations and materials. We now have a reasonable list of func&ns (perhaps you can improve on it) that describe what a light bulb does: Emit Light Generate Heat Prevent Vaporization Prevent Oxidation Convert Energy Receive Current Conduct Current Disperse Light Prevent Short Minimize Heat Mount Bulb Resist Corrosion Attract User Identify Product Protect User Resist Breakage

Unit 4 Table 4-1

Engineering Professional Dew

COMPONENTS
Light Bulb Glass Bulb

FUNCTIONS
Emit Light Generate Heat

I COMPONENTS I FUNCTIONS

Identify Product Protect User

+
- -

Prevent Vaporization (of filament)

Edges

Prevent Oxidation

Filament

Emit Light Convert Energy Generate Heat

Center Contact Insulation Stem Support Wires Lead-in Wires Heat Deflecting Disk Inert Gases Base

~eceive Current Conduct Current Prevent Short Disperse Light Conduct Current Resist Breakage Conduct Current Minimize Heat (at base) Prevent Vaporization Prevent Oxidation Receive Current Conduct Current Mount Bulb

Finish on Metal Parts

Resist Corrosion Attract User

"pyright O 1989 by Board of Regents of the University of Wisconsin System

FORM 401

Unit 4

WRITTEN ASSIGNMENT 4 See the instructions for preparing your written assignment on page 2 of this Study Guide.
1. Assume that you must explain to your management about functions. Write a short, clear, well organized essay deiining what a function is and explaining why it is useful. 2. Which of the functions of the light bulb are expressed in two-word measurable terms? 3. Which of the functions of the light bulb are not expressed in two-word measurable terms? 4. Clearly explain why component names are unacceptable as function nouns. 5. Is it necessary that the functions be precise? Explain your answer. 6. Identify all of the functions for the punch assembly of the three-hole punch. It is essential that you consider everything. Take particular note of all of the cost elements of the punch assembly, such as the four components, the various machining operations, the plating material, and the assembly of various components into the final four-piece assembly. See the punch and Exhibits 4-1 and 4-2. Use the Components/Functions Forms 401 provided in the forms packet.

'%-

As you do Question 6, we recommend that you follow the approach used with the light bulb. As a starter, remember that for the punch to work it must receive energy from somewhere. This is like the the light bulb's energy receipt (Receive Current). Note that some of the pieces are plated or treated. What functions do these perform? There are special materials used for some of the components; there are grooves and holes on others. What functions do these perform? You must look at everything; there are reasons for every bend, hole, material thickness, mark, nut, screw, etc. Otherwise they would not be there. A thesaurus, a dictionary, and technical handbooks are important references in choosing the best verb-noun functions that answer the question "What does this component do?" Caution should be exercised not to use words with local meanings (words that mean something other than what the dictionary says they mean). Keep in mind that vque analysis puts emphasis on functions that can be quantified (measured) such as ~ecei~$durrent, Transmit Torque, Emit Light. These have measurable nouns. Measured values might be, for example, 7 amperes, 100 inch-pounds, or 1000 lumens. (An example of an unacceptable fuuction is Install Spring.)

Exhibit 4-1 Mutual No. 20 Three-hole Punch

//

PUNCH HANDLE, 2005SP SHOULDER RIVET, 2006PP

P
2 2 . ;

LOCATING SCREW, 2003SP

PUNCH REGISTER, 3002SP C-RING, 3007PP PUNCH, 3005SP

%

SPRING, 3006PP

I PUNCH HOLDER, 3004SP

Q - 0.156 D SHOULDER RIVET, 3003PP

r.2'
I$

BASE, 3001SP

-4
SLUG CONTAINER, 3008SP

Unit 4

Exhibit 4-2 Punch Assembly

k"
I
'C.

C-RING, 3007PP

GROOVE

i '
I

, /

PUNCH, 3005SP SPRING, 3006SP

GROOVE

LOCATING SCREW, 2003SP

/'/'
PLATE

WELD

PUNCH HOLDER, 3004SP

TECHNICAL FAST DIAGRAMMING

NOTE: Do not attempt the written assignment for Unit 5 until you have received the corrected written assignment for Unit 4. It will be returned with additional material necessary for Unit 5. Before proceeding with this unit, carefully review your corrected Written Assignment 4 along with the new material sent to you. Make absolutply certain that you understand why the functions are shown as indicated in the additional material. It is essential that you understand the reasoning for the functions before you attempt a FAST diagram. The material in Unit 4 is so important and so often misunderstoq$ that you may not receive a normal grade on your first attempt at Written Assignment 4. A grade of C/R * is not uncommon since we find that most students need to improve their understanding by having a second try.
In Unit 4 you determined the functions of the punch assembly for the Mutual 20 threehole punch. In this unit you will arrange the functions in a hierarchy called a FAST @unction Analysis System Technique) diagram. A FAST diagram shows the specific relationships of all the functions and tests the validity of the functions. It is an essential and culminating part of the function analysis technique. Two types of FAST diagrams are in wide use: task-oriented and technicallyoriented. Each of these types of FAST diagram should be mastered by the serious value engineering student; neither works best for all problems. Task FAST diagrams are very effective for solving all problems for which a customer (and customer need) can be identified. Generally, this means that the Task FAST diagram is superior whenever the product the customer buys is in exactly the same form as the product the team develops. A customer would buy a three-hole punch rather than only a single punch assembly (except as a service part). Therefore a Task FAST diagram would be suitable for designing the total three-hole punch (which would contain"*" the assembly), but would not be suitable for a value analysis study to design only the punch assembly (a sub-assembly). Technical FAST diagrams are primarily used for single components, sub-assemblies, and processes (such as manufacturing processes). The next two units are specifically directed to Technical FAST.

READING ASSIGNMENT Function Analysis: The Stepping Stones to Good Value, Snodgrass and Kasi Chapters 3 and 4

* C/R, or C & R, means "Correct the incorrect parts of the written assignment and Resubmit for grading." Any C / R grade is completely replaced by the grade received on the corrected written assignment.

24

Unit 5

STUDY NOTES Early value analysts, such as Art Mudge and Jarbo and Ferguson, were dissatisfied with the processes for finding the correct functions of a product and determining their hierarclkal relationship in the final design. Their early work inspired Charles Bytheway to hit upon the basic ideas of a FAST diagram which he presented to SAVE (Society of American Value Engineers) in 1965. Although the idea of the FAST approach developed by Bytheway was sound, it was a number of years before the procedures for FAST diagrams we use today were fully developed. Sections 3.1 through 3.5 summarize the evolution of the FAST diagram. Carefully study Sections 3.6 through 3.8. A clear understanding of the philosophy and general rules should provide the motivation for constructing and using good FAST diagrams. Take particular note of the Task FAST diagram, Figure 3.7, for the hand drill; this is still a good representation. Chapter 4 explains each of the elements of a Technical FAST diagram and how they fit together. Carefully study all of the seven important segments in a Technical FAST diagram and be certain that you are clear on how to apply them. -.he Following is a detailed explanation of the elements of a Technical FAST diagram and an example of the rationale of conslructing such a diagram for the incandescent light bulb discussed in the last unit. The Technical FAST Diagram. A Technical FAST diagram is a picture of all the functions of a product (process, etc.) showing their specific relationships to each other and clearly showing what the product does. It is analogous to a parts blow-up drawing and yields a different and useful perspective of the problem.
Technical FAST diagrams 1. are used to test the validity of the functions and insure that all the functions are included in the analysis. 2. concisely show the problem as it is or as it could be. 3. can be used to define, simplify, and clarify the problem. 4. aid communication. 5. enable us to examine where the costs are located. 6. aid the creative process. 7. define the scope of the project. A c&hPleted FAST diagram is the general representation of a result achieved by the Functional Analysis System Technique. We will use Figure 5-1 in this Study Guide to point out the features of a completed FAST diagram and introduce its terminology. We will be using the light bulb example to help illustrate how a Technical FAST diav ' gram is developed. Each block in the diagram represents a two-word (verb-noun) function. The functions, or blocks, between the two vertical shaded lines are functions of the project or problem, such as our light bulb. The region between these lines thus represents the scope of the problem under study. It includes all the functions that the product itself performs. Each function appears only once. There is a left (or HOW) scope line and a right (or WHY) scope line. Two additional functions, one outside each scope line, are also required.

The Critical Path. There is a critical path of functions which runs between the two scope lines. Ideally it is a single, unique path on a Technical FAST diagram which never branches into multiple paths. (On Task FAST diagrams, multiple paths are common.) The critical path functions are those functions of the problem that are absolutely

Unit 5

26

Unit 5

necessary in order to achieve specifically what the user (customer) wants done. All other functions are called supporting functions. Once the critical path is determined, the functions within the scope of the project fallainto two major categories: critical path functions and supporting functions. In addition, there are two external functions, the higher order function and the causative function.

Critical Path Functions. The functions on the critical path must occur in a particular
order-from the highest level to the lowest level or, as shown in Figure 5-1, from left to right. The highest level function within the scope of the problem or project is called the basic function. All other critical path functions within the scope of the problem are called secondmy functions.

HOW- WHY Questions. The key to developing a correct and useful FAST diagram is the asking of HOW-WHY questions. One asks both a HOW question and a WHY question. The arrows beneath the HOW and WHY labels in Figure 5-1 indicate the direction to look for the respective answers. These questions are used to determine ".-1) which functions appear on the critical path and 2) the level at which they occur. Let's illustrate the use of this powerful and indispensable tool by using the questions to determine which of a pair of adjacent functions is the higher level function. Note: The WHEN question relates to the Causative Function. When that action occurs, the WHY is answered by the Required Secondary Function to the left of the right scope line. The HOW question to this function must also be answered by the Causative Function. Ask questions as follows, putting the actual functions within the quotation marks.
The HOW question: HOW is "a higher level function" accomplished? Response: "A lower level function." and conversely, The WHY question: WHY is it necessary to "a lower level function?" Response: "A higher level function." When the answers make sense, the pair of adjacent functions is arranged in the correct order. c a Let's use the light bulb for a specific example. Consider the pair of functions Emit Light and Convert Energy. See Figure 5-2 in this Study Guide. We'll apply the HOW-WHY questions to verify that Emit Light is a higher level function than Convert Energy. d
*&

The HOW question: HOW does it emit light? (Or HOW is emit light accomplished?) Response: Convert energy.

The WHY question: WHY is it necessary to convert energy ? (Or WHY is convert energy needed, or necessary?) Response: Emit light. Since the answer to both questions is logical, Emit Light is a higher level function than Convert Energy and they are, correctly, a pair of adjacent functions.

Unit 5

Unit 5 Note that, in the questioning, the functions were used in their exact two-word form-as they are listed for the light bulb. It is highly recommended that you use the same procedure. Although it may not always be pleasing in the grammatical sense, you wilfdevelop the important ability to think in terms of exactly stated functions. This is a crucial ability for successful value analysis. Until you develop it, your mind will have a tendency to digress from the value analysis approach into time-wasting pitfalls. When the critical path is complete and correct with each function at its proper level, each and every possible pair of adjacent functions will provide the proper response to a HOW question and its converse WHY question. We can state that in another way which is particularly useful in the initial stages of developing a FAST diagram: Each function on the critical path must get a logical response for a HOW question from the function immediately to its right and for a WHY question from the function immediately to its left.

The Higher Order Function and the Basic Function. The higher order function lies just outside the scope of the problem. It satisfies a need of the user; it is the reason behind why the customer buys the product. It occurs next to the basic function, which " *ris the highest level function of the product. The product does not, of itself, perform the higher order function. The higher order function answers the WHY question of the basic function. In turn, the basic function answers its HOW question. Let's use the light bulb example to illustrate this. Assume the basic function for the light bulb has been identified as Emit Light. Looking for a higher level function would lead to:
Question: WHY (is it necessary to) emit light? Response: Illuminate region. and conversely, Question: HOW (do we) illunzinate region? Response: Emit light. It ,should be clear that Illuminate Region falls outside the scope of the product since &e@ight bulb does not illuminate a region by itself. It just enables the user to cast light where needed when it is installed in a suitable fixture advantageously located. If the user places the light bulb behind an obstruction, then the chances are good that the region will not be satisfactorily illuminated. The light bulb will indeed Emit Light; the light bulb manufacturer can do no m o d Therefore Emit Light can definitely be controlled by the manufacturer and is within the scope of the product. The user wants the light bulb because of what it does-Emit Light-so that it can be used to satisfy a need-Illuminate Region. The basic function of our light bulb is Emit Light and the higher order function is Illuminate Region.

Secondary Functions and the Causative Function. Secondary functions are all functions on the critical path at a lower level than the basic function. An example is Convert Energy, as determined earlier. The level of each of these functions is, as you would expect, determined by appropriate HOW-WHY questions. You must also determine the causative function. This function lies beyond the WHY (or right) scope line. Like the higher order function, it is not a function within the scope of the problem and, hence, is not part of the critical path for the problem.

Unit 5

29

In the light bulb example, Figure 5-2, the causative function is Provide Current; it identifies the external energy source for the light bulb. In summary, the critical path is a path of functions that lies entirely within the scope of the problem. It starts with the highest level critical path function-the basic function-and ends with the lowest level function. The level of each function is determined by asking HOW-WHY questions. Two additional functions that are not part of the critical path for the problem are utilized, one beyond each scope line.
Supporting Functions. Functions within the scope of the problem that are not critical path functions are called supporting functions. They are subdivided into three broad classes: 1. Same-time or caused-by functions (below the critical path in Figure 5-1) e critical path at the left in Figure 5-1) 2. Design-objective functions critical path, but at the right, in Figure 5-1) 3. All-the-time functions (also Generally, they are classified by asking appropriate questions. Same-time or caused-by supporting functions can usually be identified by questions similar to the following. As before, one would use actual functioq@side the 7 quotation marks.
Same-time question: Does "a supporting function" happen at the same time as "a critical path function?" Example question: Does generate heat happen at the same time as convert energy? Example response: Yes, when convert energy occurs in the light bulb, generate heat happens at the same time. We can thus classify Generate Heat as a same-time supporting function related to Convert Energy. Caused-by question: Is "a supporting function" caused by "a critical path function?" Example question: Is minimize heat caused by convert energy? Example response: Yes, convert energy makes it necessary to (causes) minimize heat. We can thus classify Minimize Heat as a caused-by supporting function related to Convert Energy. Since both Generate Heat and Minimize Heat can be closely related to ConvertEnergy, they would appear on the FAST diagram just below Convert Energy and would be connected to Convert Energy by a line. In general, all same-time and caused-by functions are drawn on the diagram, either individually or in groups, in a similar location: below the critical path function they relate to and connected to it by a line. As another example, Disperse Light is caused by the methods we use to Conduct Current. Design-objective functions arise because of specifications or external requirements placed on the product by, for example, engineering or other technical considerations. The light bulb has a specific mounting method (a thread to screw into a standard holder) and is expected to emit a certain level of light intensity and inform the user of that level in some way. Hence, Mount Bulb, Provide Intensity, and Identify Product are all design-objective functions. Design-objective functions are drawn as a group

'--l

30

Unit 5

of related functions located above the critical path and near the HOW scope line as in Figure 5-1. They are not connected to the critical path.* All-the-time functions are those which assure both the dependability of the product &d the satisfaction of the user. For the light bulb, such functions as Resist Corrosion, Prevent Short, and Protect User are all-the-timefunctions. Like design-objective functions, they are drawn as a group of related functions above the critical path, but near the WHY scope line. They are not connected to the critical path.*

' % , -

Developing the FAST Diagram. A step-by-step procedure provides an organized approach to developing FAST diagrams. Basic thought processes shape the diagram by seeking appropriateresponses to questions relating functions. These were described earlier and will be used mainly in Steps 4 and 5 below. Some of the other steps in the procedure are quite mechanical. Including them makes it easier for you to devote maximum effort to the thought processes in an efficient manner. As you proceed, you will find that some or all of the following may occur: moving back and forth between steps; adding, modifying, dropping, and reclassifying functions; rearranging functions. For example, the higher order function is often not identified until Step 4.
Step 1. LIST THE COMPONENTS AND THEIR FUNCTIONS. Table 4-1 for the light bulb provides an example. Satisfy yourself that the list is as accurate as you can make it at this time before proceeding to Step 2. Step 2. WRITE EACH FUNCTION ON A CARD. The cards make it easy to reposition functions as the diagram is developed. A good size for the cards is about 2" by 3". Make only one card for each function. Even if a function appears more than once on your list, it only appears once on the FAST diagram. Step 3. SKETCH A SKELETON FAST DIAGRAM. Use a large sheet of paper, such as flip chart paper. Figure 5-1 is a good guide for your skeleton diagram. It will be a helpful framework for positioning your function cards on the paper. Step 4. ESTABLISH THE CRITICAL PATH FUNCTIONS. This is best done by first selecting the most probable basic function and asking HOW-WHY questions to identify the adjacent secondary function and #gher order function. Then continue working toward lower level secondary functions. Often you will reshuffle functions and rearrange their order. Finding the critical path will take time. It is not established until each function on it satisfies completely its appropriate HOW-WHY questions. The higher-order function an+ the causative function are also normally established in this step. Step 5. ESTABLISH THE SUPPORTING FUNCTIONS. This is done by determining relationships through appropriate questioning. We suggest you proceed in the following order: same-time and caused-by functions, design-objective functions, all-the-time functions. Step 6. MA& A FINAL CHECK. Check your diagram completely to insure it is the best possible for your project. Step 7. DRAW THE FAST DIAGRAM

Some value specialists elect to connect the functions in this group with lines.

Unit 5 Now that the diagram has been established and checked, it can be drawn in a form suitable for future use. Figure 5-1 is a good guide.

31

Figure 5-2 is the FAST diagram for the light bulb. Study it closely and visualize how the step-by-step process might have been applied. Perform Step 6 on it. Use it to help develop confidence in your understanding of FAST diagrams.

WRITTEN ASSIGNMENT 5 See the instructions for preparing your written assignment on page 2 of this Study Guide.
1. Using the function list returned with your written assignment for Unit 4, construct a FAST diagram for the pu~zcltassembly of the Mutual 20 three-hole punch. You may find that you need additional fyctions to complete the FAST diagram. 2. Explain why you selected the following functions. Use the HOW- WHY rational. a. Higher-order function b. Basic function xr? c. Each of the remaining critical path functions d. Causative function 3. Explain why you put the scope lines where you did. 4. Explain how you decided upon at least one of each of the following functions. a. Same-time or caused-by function b. Design-objective function c. All-the-time function 5. Assume that you must explain to your management about FAST diagrams. Write a short, clear, well organized essay defining what a FAST diagram is and explaining why it is useful. (At this point in the course we suggest that your explanation encompass only the Technical FAST diagram.) 6. Many people who are thought to be proficient in value analysis can neither develop good functions nor construct useful FAST diagrams. Suggest some reasons why this might be so.

TECHNICAL FAST CASE HISTORIES

Experience has shown us that it is not reasonable for the beginning value analysis student to expect to master function analysis by merely reading the rules and doing one or two examples. Larry Miles recognized this difficulty 40 years ago and recommended that the serious practitioner needs a couple of years of experience in applying these principles while working with the normal situations that affect value alternatives. One of the best ways to supplement this experience is to study case histories of value studies. This unit is devoted to the analysis of real VA studies and the role that good function analysis played in achieving good results.

'*-

READING ASSIGNMENT Function Analysis: The Steppilzg Stones to Good Value, Snodgrass and Kasi Chapters 6 and 7 Chapter 5 (Optional) STUDY NOTES In the assigned chapters you will be led through the function analysis of six different studies:
1. 2. 3. 4.
The roller brush sub-assembly which is part of a canister vacuum cleaner. The grain containment cell assembly of a grain moisture tester. A curved panel section used as part of a room divider system in business offices. The development of an emission inspection program for the State of Wisconsin Department of Transportation. 5. The design of the manufacturing process for a planetary carrier-a casting req@rhg multiple operations and a great deal of handling before it is a finished combbnent ready for installation in a vehicle transmission. 6. The improvement of an industry training program for a manufacturer.

As you study these chapters, take particular note that the value analysis process is identical for each of these studies despite t i p differences in the actual problems. This is the main reason that a competent value specialist is able to lead a value study team on a problem about which the specialist is not particularly knowledgable. The first case study, the roller brush assembly, discusses the details of function identification and of generating a FAST diagram. Take particular note of the unusual characteristic of the split critical path; this occurs when we have two parallel elements that must both be present in order to satisfy the WHY of the next lower level function and the HOW of the next higher level function. Some value specialists have suggested that this split path can be avoided in this case by using the function Agitate Surface instead of Brush Suqace and Beat Sulface. The cell assembly study was done in a University of Wisconsin-Madison 40-hour workshop. Some interesting things to note are how the mind-tuning session clarified the problem (Section 6.5) and the large number of caused-by functions. We will not be

Unit 6

33

discussing the details of function-cost allocation until Unit 7 of this course, however it is interesting to see in Section 6.8 and Figure 6.10 some of the results that can be gained from this activity. Not all studies are ideal as is illustrated in the case of the curved panel section. Although the function analysis is sound and the study resulted in some good recommendations, there are some units to be learned:
1. All pertinent parts of the organization should be represented on"the team. The correct marketing-orientedperson could have prevented the study from being manufacturing-oriented and would have assured a more acceptable and implementable solution. 2. Management commitment is essential in a VA study. Implementation is management's responsibility.
r

i,

Very little is written about effective system studies like the one for the emission inspection program for the Wisconsin Department of Transportation. The critical thing with this type of study is to first clearly identify all of the activities that occur, and then prepare an activity flow diagram, or sequence-of-activitieschart, like Figw$ 7.1. Figure 7.1 is an excellent tool for identifying all of the activities. ~ c t i v a i e s in a system study are analogous to components in a product study. This example, and the following one on the planetary carrier, deserves careful study to master the underlying rationale. The next-to-last example, the planetary carrier processing study, is a classic in how to conduct a process study of a manufactured component.* Take note of how the process flow chart is used as a basis for identifying the functions. In this study, significant effort was expended in identifying the cost elements and functions normally hidden under the overhead (specifically, fixed overhead) term. Of particular note is that this study resulted in approximately 40% cost reduction and attendant spin-off benefits to various areas of the company. The value study to improve an industry training program illustrates how all the elements of function analysis can be used on a problem that many people think is beyond the capabilities of VA. From a monetary standpoint this study was successful, but as you will see, there are things that could have been done to improve value even more.
**

WRITTEN ASSIGNMENT 6 See the instructions for preparing your written assignment on page 2 of this Study Guide.
1. Briefly, but clearly, explain why the Technical FAST diagram is the correct diagram for the following studies. (Consider the user.) a. Roller brush assembly b. Curved panel section c. Emission inspection program d. Planetary carrier

2. Explain clearly why the function Minimize Vibration is considered a caused-by

function in the roller brush assembly FAST diagram.

* A videotape summarizing this study is available from the University of Wisconsin-Madison, Department of Engineering Professional Development.

Unit 6

3. Explain clearly why the function for the rivets in the cell assembly is Measure Material and not Join Parts. 4., Explain what the cell assembly team could learn from the value index and why ' this is probably accurate. 5. Discuss what could have been done to improve the curved panel section project. State briefly why this is so. 6. How does a flow diagram, as used for the emission inspection program, aid the value study? 7. Make a list of the detailed cost items that were gathered in the planetary carrier study. 8. Write a short essay explaining the necessity for the planetary carrier team to go to so much work in gathering such difficult to obtain detailed costs. 9. Briefly discuss why you think the value analysis approach was worthwhile (or not worthwhile) in the industry training program study.

TASK FAST
Value analysis, or value engineering, has accomplished much since its introduction in 1947. I'he FAST concept was presented in 1966 by Charles Bytheway and shortly after refined in the form you have just completed-Technical FAST-by Wayne Ruggles. A need for expanding the value activity was recognized in the late 19503, and work began on applying the technology of v a l p analysis to total products. From this effort, customer-oriented value engineering, or VITAL, evolved. VITAL is an acronym derived from w u e Information, Techniques and &alytical Language. VITAL starts with the customers determining the value of the product or service. Task FAST is the communication link developed to relate the c o s t d product or service to the customer attitudes that form the value judgment.

READING ASSIGNMENT Function Analysis: The Stepping Stones to Good Value, Snodgrass and Kasi Chapter 8, through page 122

STUDY NOTES
The starting p i n t for Task FAST is similar to what you have already learned in Units 3 through 6. The differences are in the format (Figure 8.1) and in the types of functions. The emphasis is on using the customer's language or the "voice of the customer." Note that only one scope line separates the primary basic and supporting functions from the task of the total product. Learn the definitions of each of these function types: task, basic, and supporting functions. The second step, separating basic from supporting functions, is extremely important and involves input from all parts of the organization. This could involve team members or the value specialist checking with various parts of the organization to ver-"%, ify the separation of the functions. Note that the same HOW-WHY questioning technique is used to verify the position of each of the functions. Also, understand the significance of starting the diagram with the basic fwctions to determine the task. One of the major benefits of Task FAST is the use of the four primary supporting functions. They furnish means of analyzing costs and attitudes that are unique to VITAL. Study the types of functions that are assigned to Assure Convenience and how these differ from, for example, those for Satisfy User. The listing of needs, wants, desires, and requirements described in Section 8.6 is often the way a product concept starts. From these descriptions, functions are developed and then assigned to one of the four supporting functions (Section 8.7). Another way to identify function is to use a structured bill of materials and a Components/Functions Form 401. (See Figure 6.3 in the text and Table 4-1 in this Study Guide for examples.) To get started on identifying all the functions foi the three-hole punch, see first the structured bill of materials for the three-hole punch, Exhibic 7-1. It is also a form for providing computer input data.

36

Unit 7

Then see its Components/Functions Form, Exhibit 7-2, showing all the components and some functions for several of the components. Observe that it is convenient to include operations as well as parts in the components column. An exploded view of the hee-hole punch is shown in Exhibit 4-1.

WRITTEN ASSIGNMENT 7 See the instructions for preparing your written assignment on page 2 of this Study Guide.

* %,-

1. Construct the Task basic function portion of the Task FAST diagram for the Mutual 20 three-hole punch. (It should be similar to Figure 8.5 in the text.) 2. Explain why you selected the following functions. Use the HOW-WHY rationale. a. Task function b. Each of the basic functions (Consider all of the primary and secondary functions). 3. Identify the secondary level supporting functions for the Mutual 20 three-hole punch. Your answer should be submitted in a form like that illustrated in Section 8.6.1. NOTE: You may use the present tense. For example, use "It is small enough to store" rather than "It should be small enough to store." 4. Do a complete Task FAST diagram for the Mutual 20 three-hole punch similar to that in Figure 8.6. NOTE: Questions 1and 4 of this assignment may be combined on one Task FAST diagram. 5. Discuss what happens as we develop the Task FAST diagram further to the right by continuing to ask HOW. 6. What are the advantages of the Task FAST diagram?

Exhibit 7-1
The College of Engineerin C " n i v w i t y 0, ~ s c o n s i i d ~ s o n Engineering Professional Development

Structured Bill of Materials

COMPUTER INPUT DATA

FILE #

PRODUCT

STRUCTURED BILL OF MATERIALS

MOTU?G 2 0 : 3-HOLE PAPER PUNCH

IDENT. No.

MATERIAL CALCULATION
I I

DATA

3 HOLE PAPR PUNCH

1 1 1

LSS PNCB AS-BASE UVET PNCB HNDLE U S SLUG CON 3ASE ASSEMBLY ?STET BASE-REGSTR ?AINT 8/RACK 3LACK PAINT 3ASE 14 GA CLD RL STL ?ORM/PIERCE ?UNCH REGISTER 16 GA CLD RL STL ?ORM/PIERCE/EMBS .I56 D SHLD RIVT ?UNCH ASSEMBLY USEMBLE

I
010

I
I

I
901 1

120

1
I
I

I1
I
I

1 1

I
.0033

I
I

250

I
I

12001 1

I
I
I

I
4

250

12001 1

3
010
180

SPRING "C" RING LOCATING SCREW

3
3
3

.0060 .0025

Exhibit 7-1

Structured Bill of Materials (Continued)

Cme

Colksge of Engineering Un/vm/ty of WisconsiR-klladison Engineering Professional Development

COMPUTER INPUT DATA

6

PRODUCT

FILE #

MUTUX 2 0 : 3-HOLE PAPER PUNCH

s301

STRUCTURED BILL OF MATERIALS

SHEET

1
O F F

IDENT. No.

MATERIAL CALCULATION
(INVOLVES)
3/8 ROD CURN/TRRD/KNURL
.0352,3.1416,.6875,.284,.17

DATA
(PART OF)

?I CR BARRL PLT
SLUG CONTAINER PUNCH HANDLE
18

GA CRS STRIP

F O R M FOLD

BLACK PAINT SILK SCREEN SHOULDER RIVET

1 7 / 3 2 " DIAM.

1001

nis CoIfqe of Enginesvh c U n / w s w of ~ ~ c o n s l ~ d f s o n Engimrlng Professlonel Development

COMPONENTS
Shoulder Rivet

Punch Handle 2005SP

Slug Container 2004PP

Spring 3006PP Punch 3005SP

Punch Holder 3004SP

I
1

Punch Assembly 20020 1 .I56 D Shoulder Rivet 3003PP

Unit 7 Exhibit 7-2

___1
Transmit Force

FUNCTIONS

COMPONENTS
Base 300 1SP

FUNCTIONS

Base Assembly 200101

3 Hole Punch Assmbly 100101

3 Hole Punch Assmbly 100102

Transmit Force

Return Punch

Penetrate Paper Resist Breakage

3 Hole Punch Assnibly 100103

Punch Register 3002SP

Instruct User

Copyright Q 1989 by Board of Regents of the University of Wisconsin System

FORM 403

FUNCTION COSTS
NOTE: Do not proceed with the written assignment for Unit 8 until you receive your corrected Written Assignment 7. It will be returned with a Task FAST diagram needed for Written Assignment 8. Costs are essential in any meaningful value engineering work. Identifying function costs provides cost visibility and is second in importance to identifying the functions themselves. This unit describes a cost system designed for value engineering. You are shown how costs are allocated to functions. The handle of the three-hole paper punch , is used as a specific example.

READING ASSIGNMENT Function Analysis: The Stepping Stones to Good Value, Snodgrass and Kasi Sections 12.1 through 12.4 (including Figure 12.13)

STUDY NOTES
The importance of having proper costs has been emphasized in Unit 3. Chapter 12 uses several examples to describe the various techniques for converting the material and operation costs to the function costs for the functions they perform. The latch from the lighted push button switch demonstrates the detail used in low-cost but highvolume parts. The coin box assembly expands on the logic for separating a basic function cost from a supporting function cost and also demonstrates another form for allocating costs. The approach for allocating function costs for the plastic top of a canister vacuum cleaner can be used on many molded and cast parts. Assigning function costs to FAST diagrams furnishes excellent functioncost visibility. pote (See Figure 12.11.) the value index (VI) for the roller brush sub-assembly. C?il#ating costs manually becomes not only tedious but, in more complex products, very difficult and usually inaccurate. The VITAL automated costing flow chart (See Figure 12.12.) demonstrates the data files and process for using a software program*. Study the function cost comparison, the computer printout designated Figure 12.13, to see how competitive product&osts can be evaluated by using function costs. The use of such comparisons will be an important part of Unit 10. To provide an example for this unit, the three-hole punch costs have been expanded to include all of the additional parts from the punch assembly for which you developed a Technical FAST diagram in Units 4 and 5. To provide a basis for costing, a hypothetical high-production factory, using multi-operational tooling, is assumed. Assumed departments, labor rates, and overhead multipliers for the hypothetical factory are given in Exhibit 8-1 in this Study Guide. The overhead multiplier represents the cost of indirect charges such as for spoilage, down time, maintenance, equipment

* If you are interested in the complete software program, contact the Center for Value Engineering Research, Department of Engineering Professional Development, University of Wisconsin-Madison.

Unit 8

41

amortization, and so forth. The calculations required to determine the costs for the three-hole punch were carried out with a software program. (See Section 12.3.) Exhibit 8- 1. Data for a Hypothetical Factory DEPARTMENT NUMBER 010 110 160 220 230 250 260 320 DEPARTMENT NAME Assembly Grind, external Heat treat Painting Plating Punch press Rivet Screw machine, auto LABOR OVERHEAD MULTIPLIER 1.80 2.70 3.OO 2.70 6.00 2.50 2.20 3.OO

($/W
3.28 3.77 4.60 3.33 3.40 3.24 2.77 4.00

To organize the information required by the computer, a computer input f % mwas prepared. It is presented as Exhibit 7-1 in the previous unit and is called the structured bill of materials. The various headings on the form are explained below. The first three columns provide space for entering the drawing number. See Exhibit 7-1 in this Study Guide. The number is assigned in three parts: a one-digit level number, a three-digit number called a VSI number, and a two-digit suffix. The level number recognizes that all assemblies must have parts or assemblies going into them. It is based on the following scheme. Level-three parts or assemblies go into level-two assemblies, level-two parts or assemblies go into the level-one assembly which is always the top assembly. By writing the three additional digits of the VSI number immediately following the level number, a four-digit part number is assigned to each part. The two-digit suffixes provide the standard means for describing the types of parts, assemblies, materials, or operations. The suffix meanings are given below: SUFFDL SS SP PP MI, M2, etc. 0 1 , 0 2 , etc. REPRESENTING Assembly Fabricated Parts Purchased Parts Materials Operations

The identification number column provides a space for previously assigned numbers currently in use for individual parts. We do not need such information for our example. The description section provides space for any desired descriptive terms or abbreviations. The next five headings are self evident for purposes of our example. Reasonable information is filled in, as appropriate. Note that the purchase cost information provides data needed for costing purchased parts. The next two headings are associated with data needed for cost calculations. The material calculation column provides space for data needed to cost material. To clarify how this data is obtained, refer to the entry for 2005M1 in Exhibit 7-1 in this Study Guide. The punch handle (2005SP) is made of 18-gauge rolled steel (assigned

42

Unit 8

suffix: MI). The meaning of the five numbers which appear in the materials calculation space, separated by commas, is as follows: THICKNESS LENGTH WIDTH DENSITY COST PER LB (inches) (inches) (inches) (lblcubic inch) $/lb 0.050 11.9375 3.25 0.284 0.14

The computer will calculate the product of these numbers (see below) which is, you will note, the cost for the material used for one punch handle. The last heading in Exhibit 7-1 is divided into "involves" and "part of." The "involves" space can be used to indicate which parts are being assembled. The "part of" space indicates into which assembly the given part or assembly goes. Other useful or helpful information could also be inserted here. When the information assembled in Exhibit 7-1 is entered into the computer, along with the appropriate computer program and the additional files it requires (see "'C-Figure 12.12), the computer will print the costed bill of materials labeled Exhibit 8-2 in this unit. The exhibit is self-explanatory. As a check on your understanding of it, you might wish to calculate the material cost for 2005M1 and compare it with the computer value. The cost information is printed in ascending order of the assigned numbers and also, then, in ascending order of assemblies. Note that by making the original assignment of these numbers in a reasonable manner, one also indicates the order of processing and assembly of the several parts and subassemblies. As Chapter 12 indicates, cost information provides the starting point for allocating a part cost to one or more functions. Since you do not have the software described by Figure 12.12, use a Function Cost Detail/Surnmary Form 801 from the forms packet and manually work through the various steps of the function cost allocation technique. The punch handle (2005SP), the shoulder rivet (2006PP), and the riveting operation (100102) will be used to illustrate this important technique. To proceed, assume that the list of functions identified for these two parts in the assembly operation include the following:
" .

a.
BASIC FUNCTIONS Receive force (021) Transmit force (022) SUPPORTING FUNCTIONS Reduce effort (052) Resigt breakage (044) Add color (062) Identify product (061)

These functions and their assigned numbers (in parentheses) appear in the material you received with your corrected Written Assignment 7. Refer to Exhibit 8-3 in this Study Guide. It includes the information from Exhibit 8-2 that is pertinent to our example-data for the punch handle, the shoulder rivet, and their riveting operation. Other information is added as described below. It is convenient to start with the material cost of the punch handle, 2005M1. An excellent way to assign function cost allocations for the raw material in a part is to make a sketch on which to indicate what section of the part does what. In Exhibit 8-4 of this unit, four areas of material have been identified and related to function. This

Unit 8

Exhibit 8-2 Costed Bill of Materials

COSTED B I L L OF MATERIALS

PROJECT: 2 2 3 PRODUCT 01, MUTUAL 2 0

3 HOLE PAPER PUNCH

1 0 0 1 - S S 3 HOLE PAPR PNCH

-01 ASS PNCH AS-BASE

1.000 1.000 1.000

0.4178

0.2536 0.0364 0.0137

0.6247 0.0656 0.0246

1.2961 0.1020 0.0383

-02

RIVET PNCH HNDLE

0.0000

0.0000

-03 ASS SLUG CON

2001-SS

BASE ASSEMBLY

-M1 BLACK PAINT -01 RIVT BASE-REGSTR - 0 2 PAINT 8/RACK 2002-SS PUNCH ASSEMBLY

-01 ASSEMBLE
2003-SP LOCATING SCREW

-M1 3 / 8 ROD
-01 TURN T H m KNURL

-02 2004-PP 2005-SP

N1 CR BARRL PLT SLUG CONTAINER PUNCH HANDLE

-M1 1 8 GA CRS S T R I P -M2 BLACK PAINT

-01 FORM FOLD

- 0 2 PIERCE 2 HOLES

-03 PAINT 8/RACK

-04 S I L K SCREEN

(Contirzued on next page.)

Unit 8 Exhibit 8-2 Costed Bill of Materials (Continued)

COSTED BILL OF MATERIALS

PROJECT: 2 2 3 PRODUCT 01, MUTUAL 2 0

3 HOLE PAPER PUNCH

2006-PP 3001-SP
-M1
*%."

SHOULDER RIVET BASE 1 4 GA CLD RL STL

2.000 1.000 1.000 1.000 1.000 1.000

0.0100 0.1021 0.1021 0.0000 0.0380 0.0380

0.0000 0.0027 0.0000 0.0027 0.0027 0.0000

0.0000 0.0068 0.0000 0.0068 0.0068 0.0000

0.0100 0. 1116 0.1021 0.0095 0.0475 0.0380

-01 FORM/PIERCE

3002-SP
-M1

PUNCH REGISTER 1 6 GA CLD RL STL

3003-PP

. I 5 6 D SHLD RIVT

4.000 3.000 3.000 3.000 3.000 3.000

0.0132 0.0180 0.0180 0.0000 0.0000 0.0062

0.0000 0.0132 0.0000 0.0081 0.0051 0.0376

0.0000 0.0509 0.0000 0.0203 0.0306 0.1247

0.0132 0.0821 0.0180 0.0284 0.0357 0.1685

3004-SP PUNCH HOLDER

-M1

1 3 GA CRS STRIP

-01 PlERCE FORM

-02 N 1 CRBARRL PLT 3005-SP PUNCH

-M1

.25 0 ROD

-02 HEAT TREAT

-03 GRIND

3,000 3.000 3.000 3.000 3.000

0.0000 0 .OOOO

0.0092 0.0113 0. 0051 0.0000 0.0000

0.0276 0.0276 0.0306 0.0000 0.0000

0.0368 0.0418 0.0357 0.0180 0.0075

-02 PLATE 3 0 0 6-PP 3007-SP SPRING "C" RING

0.0000 0.0180 0.0075

Unit 8 Exhibit 8-3 Costed Bill of Materials (Partial) with Function Cost Allocation Data
COSTED BILL O F MATERIALS

45

......................................................................
PROJECT: 2 2 3 PRODUCT 01, MUTUAL 2 0

3 HOLE PAPER PUNCH

PUNCH HANDLE 1 8 GA CRS STRIP BLACK PAINT (062,111) FORM FOLD (O44,l, 4) (022,B) PIERCE 2 HOLES ( 0 2 2 f 1 , 1) PAINT 8/RACK (062-, 1 , l ) SILK SCREEN ( 0 6 1 , 1, 1) SHOULDER RIVET ( 0 2 2 , l f 1) 3 HOLE PAPR PNCH ASS PNCH AS-BASE RIVET PNCH HNDLE ( 0 2 2 1 1,1) ASS SLUG CON

1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.000 1.000 1.000 1.000 1.000

0.0868 0.0771 0.0097 0.0000 0.0000 0.0000 0.0000 0.0100 0.4178 0.0000 0.0000 0.0000

0.0298

0.0788

0.1954

(022,1.25,3.25, .0375,. 05) (021,.37d3.25, .0375,.

0.0364 0.0137 0.0137

0.0656 0.0246 0.0246

0.1020 0.0383 0.0383

allows one to determine ratio multipliers for finding the percent of total material cost that is to be assigned to a particular function. Use the Task FAST diagram returned with your Written Assignment 7. In Exhibit 8-4, the four areas differ only in width. All have the same length and thickness, and it is assumed that under normal usage only 0.0375 inch of the 0.05 inch thickness is adequate. (The additional thickness over ,0375 inches is assigned to Resist Breakage.) Also in Exhibit 8-4, 1.25 inch of the 3.25 inch width is assigned to the function Transmit Force. The information for Transmit Force, function number 022, is inserted in Exhibit 8-3 under 2005M1 in the following form: (022, l.25,3.25, .0375, .05). Following the function number are two pairs of numbers separated by commas."The comma within each pair indicates division. The calculation for the first pair (1.25,3.25) gives the first ratio; its value is 0.3846. The numbers in the pair indicate that 1.25 inches

Exhibit 8-4

Assignment of Function to Material for Punch Handle, Part No. 2005SP

RAW MATERIAL: Overall width - 3.25"

Transmit Force: 1.25" of width Receive Force: 0.375" of width Reduce Effort: 0.5" of width

Overall thickness - 0.05"

Resist Breakage: Unassigned width (mostly flanges) plus additional thickness over 0.0375" Add Color: Paint

Unit 8

47

of the 3.25 inch total width is assigned to the material for Transmit Force. In a similar manner, the second pair (.0375, .05) yields a second ratio (0.75). The numbers in the second pair indicate that 0.0375 inches of the 0.05 inch overall thickness is assigned to the material for Transmit Force. The comma separating the two pairs indicates multiplication (of the two ratios) which yields a value of 0.2885. The actual cost of the steel material for the punch handle which is assigned to Transmit Force ($0.0222) is obtained by multiplying the product of the two ratios and the cost of the steel material: 0.2885 x $ 0.0771 = $ 0.0222. The $ 0.0771 is the total cost of the steel material, 2005M1 from Exhibit 8-2. The amount of !his total cost over $ 0.0222 must be assigned to other functions by completing additional entries for 2005M1 in a similar manner. You should verify one or more of them to reinforce your understanding. You should also make two quick checks on the calculated entries. First,phe sum of the ratio multipliers for 2005Ml should equal one. Second, the sum of each $ column should equal the corresponding dollar value in Exhibit 8-2 for the steel material. If there are several allocations, such as for 2005M1, you can determine the last allocation by entering a "B" for "balance" and subtracting the total of the previously calculated allocations from %total steel cost. This speeds up the tabulation, particularly with more complex calculati&s. The second material, black paint (2005M2), is assigned to Add Color (function 062) in its entirety. Therefore the entry in Exhibit 8-3 is (062,1,1) since each ratio is one. Their product is also one so the total amount is assigned to this function. The same logic is used for assigning cost to Identify Product for 200504. For 200501, form fold, it was judged that the flange reduced the potential for breaking by approximately 25%. Therefore the function 044, Reduce Breakage, has an allocation entered as (1,4), the ratio multiplier is then 0.25, and the labor plus overhead totals one quarter of the cost of Reduce Breakage. The remaining "balance" is 0.75 and is assigned to 022, Transmit Force. Each of the subsequent operations is assigned to its specific function in total. The shoulder rivet (2006PP) is also assigned in total to Transmit Force, as is the operation (100102) which riveted the punch handle to the base. The allocations for the two parts (2005M1 and 2006PP) and the three assembly operations (100102, 200501 and 200502) are now posted to the function Transmit Force (022) on a Function Cost Detail/Surnmary Form 801, as shown in Exhibit 8-5. Verify all of the entries. The 100.0 in the % OF TOTAL column for 100102 says that-, 100% of the cost of 100102 is assigned to Transmit Force. Similiarly, the 28.8 in the % OF TOTAL column for 2005M1 says that 28.8% of the cost of material 2005M1 is assigned to Transmit Force -0.0222 is 28.8% of 0.0771. The remaining 71.2% is assigned to other functions and would appear on their Function Cost Detail/Summary Forms. Entries for Transmit Force cannot be made until all of its costs are identified and entered on the form. Each cost column would then be summed, and its sum would be entered for Transmit Force. The % OF TOTAL column is the percent of the total cost of the three-hole punch assigned to Transmit Force. It cannot be filled in until the total cost of the three-hole punch is determined. A completed Exhibit 8-5 would be similar to the computer printout presented as Figure 12.9 in the text. Since you do not have the software needed to print out function cost information, the Function Cost Detail/Summary Form 801 was designed fopyour use in this course. Copies of this form and of Exhibit 8-2 and Exhibit 8-7 are included in the forms packet. They are for use with the written assignment.

48
l7m Colkgs of Engheri

Unit 8 Exhibit 8-5 A Function Cost Report Example

C u n / w s w of WIsconsI~8dI8on Englwring ProfessionalDevelopment

FUNCTION COST DETAIUSUMMARY

ASSEMBLY No.

Copyright 6 1989 by Board of Regents of the University o f Wisconsin System

FORM 801

Unit 8

49

Another form for allocating cost to function is shown in Exhibit 8-6. Exhibit 8-6 is a non-computerized version of Exhibit 8-2. It contains no additional information and is provided only as an alternative example for organizing cost/function information for small projects.

(Written Assignment 8 follows Exhibit 8-6.)

7 hCoIkge of Ehghswl CUnfversffy of WiIseo&dhn Engineering Professional Development

Exhibit 8-6 Costed Bill of Materials

COSTED BILL OF MATERIALS

This Assembly No.

PROJECT No.

223

PRODUCT 3-HOLE 'PAPER PUNCH

is Part of Assembly No.

MODEL 2 0

1 00 1 SS

TOP ASSEMBLY
FUNCTION AUOCATION(S)

PART No.

I
I

PART NAME OR OPERATIOT

I

lOOlSS 01 02

3 HOLE PAPR PNCH

ASS PNCH AS-BASE RIVET PNCH HNDLE ASS SLUG CONTAINER BASE ASSEMBLY BLACK PAINT RIVT BASE-REGSTR PAINT ~ / R A C K

1 10.4178
1 1 1

-----

03
2001SS

--0.0070

1 0.1603
1 1 1

M1
01 02 2002SS 01 2003SP M1

"

----0.0497

PUNCH ASSEMBLY ASSEMBLE LOCATING SCREW 3 / 8 ROD

TURN/THRD/KNURL

3 3 3 3 3 3
1 1 1

--0.0110 0.0110

o1
02 2004PP 2005SP
M1

N I CR BARRL PLT SLUG CONTAINER PUNCH HANDLE 1 8 GA CRS S T R I P BLACK PAINT FORM FOLD PIERCE 2 HOLES

----0.1000 0.0868 0.0771 0.0097

M2
01

1
1
1

02

-----

0.0054

0.0135

0.0189
FORM 80.

:opyrightO 1989 by Board of Regents of the University of Wisconsin System

Exhibit 8-6 Costed Bill of Materials (Continued)

T h Collsgo of ~ I m e f C U n l m of W k m s d d k F o n Engineering Professional Developmml

COSTED BILL OF MATERIALS

This Assembly No.
PART No.

PROJECT No.

22
PAPER PUNCH MODEL 2 0

PRODUCT 3-HOLE
is Part of Assembly No.

O0
PART NAME OR OPERATION

ASSEMBLY
TOTAL $ FUNCTION ALLOCATION(S)

QTY.
1 1

MATERIAL $

LABOR $

3VERHEAD $

200503 04 2006PP 3001SP

M1

PAINT 8/RACK S I L K SCREEN SHOULDER RIVET BASE 1 4 GA CLD RL STL FORM/P IERCE PUNCH REGISTER 1 6 GA CLD RL STL
FORM/P IERCE /EMB s

---

--0.0100 0.1021 0.1021

2
1 1 1

01 3002SP
M1

---

o1
3003PP 3004SP
M1

. I 5 6 D SHLD RIVT PUNCH HOLDER

13 GA CRS STRIP
--

02

N I CR BARRL PLT

3 3
-

--0.0062 0.0062

3005SP
M1

PUNCH
. 2 5 0 ROD

3 3

o1
02

TURN/GROOVE/MILL

HEAT TREAT GRIND

03

3 3

-------

SLOO'O

Unit 8

53

WRITTEN ASSIGNMENT 8 See the instructions for preparing your written assignment on page 2 of this Study Guide.
NOTE: Use the functions and function numbers on the Task FAST diagram returned to you with your graded Written Assignment 7. Use the copy of Exhibit 8-2, the copy of Exhibit 8-7, and copies of the Function Cost Detail/Summary Form in the forms packet and send them in with this assignment. 1. Do a complete function cost allocation for the Base Assembly (2001SS). Provide the following: a. A sketch for each part of the base assembly indicating the function assignment-similar to Exhibit 8-4 in this Study Guide. NOTE: See Exhibit 8-7. Use t copy of Exhibit 8-7 in the forms packet and send it in with this assignmen b. Completed Function Cost Detail/Summary Form 801 worksheets similar to Exhibit 8-5. (See also Figure 12.9 in the text.) c. A complete summary of the function costs for the base a s s e m q similar to that shown in Figure 12.10, but on Function Cost Detail/SurnrnaryForms. 2. Calculate the cost allocation for [lie remaining functions of the three-hole punch. Post the function allocations and pertinent data on the copy of Exhibit 8-2. Provide completed Function Cost DetaillSummary Form 801 worksheets similar to Exhibit 8-5 (see also Figure 12.9 in the text) and a complete summary of the function costs for the punch similar lo that shown in Figure 12.10, but on Function Cost Detail/Summary Forms. 3. Explain your calculations for determining the ratio multiplier for the ResistBreakage fuction of the punch handle material (2005M1). Do this as if the other ratio multipliers for this part had not been done yet and you chose to calculate the ratio multiplier for Resist Breakage first. 4. Clearly explain why operations 200502, 200503, and 200504 are allocated to the functions indicated in Exhibit 8-3 in this Study Guide and not to some other function. 5. Explain the Receive Force function allocation. Clearly explain why we do not allocate any costs of the punch rod (3005M1) to this function.

*-"

Unit 8

FUNCTION ATTITUDES AND VALUE MISMATCH

Value engineering is a system in which techniques add to its problem-identifying and problem-solving powers. This unit deals with two techniques that are particularly effective when using customer-oriented value engineering. Function attitudes furnish a communication link between cost and customer attitudes. Value nzismatclzes show critical relationships that affect custome acce tance and product profitability.

READING ASSIGNMENT Function Analysis: The Stepping Stones to Good Value, Snodgrass and Kasi Chapter 13 %t Chapter 14, Sections 14.1-14.7 and 14.12-14.18
\
i

STUDY NOTES

Function Attitudes. Unit 3 emphasized the importance of customer attitudes and the means for procuring relevant data. This unit returns to Chapter 13 and describes how customer attitudes or features and characteristics in the a yriori approach are allocated to functions. Review these techniques carefully. Notice that a user log, as in Figure 13.12, prints out four kinds of information: faults, likes, trouble-freedays, and faults per day. Only the faults and likes are allocated to function. The usage information helps in determining reasons for the faults or likes. The trouble-free days and faults-per-day reliability are indices that can be used for comparing the performance of one make versus another make. The function fault summary for a usage log, Figure 13.14, indicates how many customers/users in the study found one or more faults and how many total faults occurred for each particular function. This, again, is specific information on which to base decisions. It is also used to compare one make with another or one design with another. One could also summarize customer/user likes from usage logs in a computer -'"* printout. Function-fault or function-like details contain the summary information but add additional important information. Under Wring Clothes, Figure 13.14, note that five test stations out of 25 stations (20% of the stations) indicated faults for this basic function. Note that the comments from these five test stations are shown in Figure 13.15. Note further that the number of comments from the five test stations is 15. A means of measuring customer acceptance is essential in order to know how to determine good value. Review Section 13.7 and try to develop five to six questions that could be a significant measure of acceptance for your product. Three different testing procedures are described: a priori, usage logs, and interviews. Review them carefully. Which ones could be a model for obtaining customer attitudes for your product? Remember that the targeted "customers/users" must play a major decision-making role in the selection of your product. The obstacles to market research are major. Which ones might be present infyour organization? Start with the knowledge that well-executed market research is always justified by the benefits accrued.

56

Unit 9

Value Mismatch. Value mismatch, function attitudes, and function costs present cost and marketing data in a significantly different form. And when function attitudes and function costs are compared, one make to another, significant differences are apparent. Wh&nproduct acceptance measures are included, a group of categories can be identified. A great deal of effort doesn't always result in an increase of acceptance or value. From this observation the term "value mismatch" evolved. Now study the four types of function mismatches. Each can have an adverse affect on the two sides of the value relationship-customer expectations and lowest manufacturing cost. Note the nine combiriations that can occur. Sections 14.4- 14.5.2 discuss value and its variables. Setting ratings, either verbal or numerical, is an excellent means to show the effect of the variable against value. Which variables are considered in your product or service? Try setting up a rating system to demonstrate the various effects. The public school system exan~ple in Chapter 13 is reviewed in Section 14.7. What types of value mismatch would you call the functions mentioned in this section? The Pareto principle is stated in Section 14.12 and illustrative examples occur in "*-following sections. In the case of the lighted push button switch, notice that type one mismatches are present. No one was aware of the problems displayed in Figure 14.7 prior to the customer-oriented value engineering study. The automatic clothes washer study demonstrates again that functions with poor performance reduce the customer's accept'ance. It also demonstrates the challenges designers face when various objectives work against one another. Make A's design to Accommodate Unbalance and Minimize Noiselvibration had been marginal from the start. It is a classic example of much effort and cost being invested with little increase in performance. To improve these two functions, the spin speed (used to Remove Water from clothes) was reduced. The result was to add faults to a basic function, Wring Clothes, which further lowered the customer's product acceptance. Function attitudes are precise indicators of a customer's degree of acceptance. Each value mismatch helps to categorize a problem area. Unit 10 will show you the power of functional analysis to identify the problem functions. Creating-by-function will demonstrate an approach to solving the problems,

WRITTEN ASSIGNMENT 9
i

See the &tructions for preparing your written assignment on page 2 of this Study Guide.

1. Why are function attitudes important? 2. Why is the value mismatch technique LPortant?

3. Compare the advantages and disadvantages of the two types of customer attitude
techuiques.

4. If we are interested in comparing the dependability of Makes A and B electric motors on pages 228-229, we can analyze all of the "07" functions as one group (treat function 07 and all of its branch functions as 07 functions.) Develop the table and determine the scores of both makes for the 07 function, Assure Delxwdability.
5. Discuss the conclusions that can be drawn from the results obtained in Question 4.

6. Review Section 13.7 and develop five to six questions that would be a significant measure of acceptance for the three-hole punch.

Unit 9

57

7. Discuss the factors mentioned in Section 14.4 of the text for some new consumer product. Try to select one that the instructor might have some knowledge of such as a PC, an innovative automobile, or other consumer product with wide appeal. 8. Discuss value mismatch in terms of the three-hole punch. 9. Do a Pareto analysis on Make B of the lighted push button switch. What can you conclude from this analysis? NOTE: Do not use the higher level functions 01,02,03,04,O5,06, or 07 when there are lower levels to these functions.

FUNCTION ANALYSIS AND CREATIVITY

You have studied three of the four parts of the information phase: FAST diagramming, function cost, and for Task FAST, the function attitudes. The fourth part is function analysis. It is of considerable importance and has been used in the title of the textFunction Analysis: The Stepping Stones to Good Value. This fourth step is also called "evaluate by function" by Lawrence Miles. It is the activity that identifies the "problems" or "opportunities." Value mismatch techniques refine the procedures. The next obvious step is "creativity" or "create by function," the third phase of the job plan.
.%"*

READING ASSIGNMENT Excerpts from: "Techniquesof Value Analysis and Engineering," L. D. Miles Chapter 3
Function Analysis: TIte Stepping Stones to Good Value, Snodgrass and Kasi Chapter 15 Review Chapter 14, Sections 14.1 through 14.7 and 14.12 through 14.17
Also, review Unit 9 of this Study Guide.

STUDY NOTES
The function analysis step of the information phase utilizes the functions you have identified and their function costs in order to evaluate the opportunities for development planning. Often a person will react to a function cost by saying, "It isn't worth it; there must be a better way!" In most cases, the proper evaluation of a function and its existiny costs requires an orderly approach to determine what is possible. The ultimate objectibfi the evaluation phase, the last phase of a team project, is to assign a value of lowest cost that would fully meet the known requirements of the function. Miles calls this "the measurement." Such function costs for a total product become the value standard. Miles lists the five steps involved. ability to estimate and approximate is very important at this particular stage. The major contribution of function is to allow a comparison with other products or services which perform that particular function. The case study of the gas tanks for Navy landing craft in the Miles Excerpts, Section 32, illustrates this. The function of the gas tank might be stated as Store Gasoline. The function leads us first to 50-gallon standard drums, then to a 250-gallon oil tank made for domestic use.. The recognition of special factors or functions for the Naval gasoline tank requires an estimate of added cost. The established value of the function Store Gasoline becomes $50.00, about one tenth of the actual cost of $520 for the special alloy tank. The final design cost is $80.00, a clear demonstration of the effectiveness of the value analysis approach. Often functions are interacting and interdependent. The procedure for listing these functions is outlined, and an example is provided in Section 15.5. Particularly

Unit 10

59

note that the functions were 1) identified and then 2) arranged in an order suitable for evaluation. For our purposes, this order is inherent in the basic- and supportingfunction format of Task FAST and in the Technical FAST diagramming format. Another effective means of evaluation involves using various relationships. Three are suggested: function-property relationships, property-material relationships, and material-cost relationships. All this data is available in published form but often needs some conversion. For example, the price of low carbon steel sheet might be determined at 10 centsbb while standard aluminum alloy sheet might &st 45 cents/lb. To make a comparison based only on cost-per-pound would be inaccurate, as the two materials have dHerent densities. The density of steel is 0.283 lb/cubic inch while that of alurnirlum is only 0.098 Ib/cubic inch. If you wish to compare equivalent volume on a cost basis, you need $/cubic inch. To obtain it, the following calculation could be made.
F '

.10 $/lb x 0.283 lb/cubic inch = ,0283 $/cubic inch, for steel .45 $/lb x 0.098 lb/cubic inch = .0441 $/cubic inch, for aluminum
This readily indicates that although the cost per pound for aluminum is q t i p e s that of steel, the cost ratio of aluminum to steel on a volume basis is closer to 1; h e s . Go back and review value mismatch in Chapter 14 of Function Analysis: The Stepping Stones to Good Value and the material in Unit 9 of this Study Guide. While reviewing, think in terms of another dimension to function analysis-creativity. Once the functions with greatest opportunity [or improving product acceptance and/or reducing costs are identified, the next step is to think of other ways to perform these functions ushg creativity. Study the quotation at the begiming of Chapter 15. Where do you fit? Often the challenge is to create on the right function. Note the six steps that should precede the creative phase. Several examples are included. The examples are primarily from design and construction because of co-author Muthiah Kasi's background. The ability to apply the concepts to your own products is an excellent creativity exercise. The proposed tunnel station for the CIA rapid transit extension to O'Hare airport in Chicago is an interesting example of creative thinking. Returning to the three-hole punch project, review the Function Cost Detail/Summary forms to determine the high-cost functions. Then analyze the function cost details to determine the major parts and operations that make up the cost. Use the Pareta, analysis of maldistribution described in Chapter 14, Section 14.12. For those who would like a more detailed discussion of creativity,Applied Imagination: Principles and Procedures of Creative Problent-solving by Alex Osborn, is recommended.

WRITTEN ASSIGNMENT 10
See the instructions for preparing your written assignment on page 2 of this Study Guide. What is meant by "evaluating a function?" List the progressive steps in evaluating a function. How are interacting functions evaluated? Explain how the following quote applies to us who practice VA/VE: "Some men see things as they are and say, 'Why?' I dream things that never were and say, 'Why not?' "

Unit 1 0

5. What are the specific activities that should precede the creativity step? 6 . Do a Pareto analysis on the three-hole punch using the Function Cost DetaiySum, , m a yforms previously developed. Identify those functions that account for 80% of the total punch cost. 7. Select five of the functions identified in Question 6 and conduct a creativity activity. (Get some friends to work with you if you wish.) Use the copies of the Idea List form in the forms packet and try to get as many ideas as possible; the ideas can be major or minor, obscure or sensible. NOTE: Retain a copy of your ideas for your use for Written Assignment 11.

EVALUATION
NOTE: Do not proceed with the written assignment for Unit 11 until you receive the corrected written assignment for Unit 10. Up to this unit, your objectives have been to collect information, identify functions, put them in a function logic diagram called FAST, allocate the cost and attitudes information to the functions, and carry out adunctional analysis to determine the function mismatches. These particular functions were then used in the creative phase to determine other ways to perform the particular functions. You're now ready to determine how to obtain the lowest cost product or service that will receive high customer acceptance. This important relationship isk(eultirnnte objective that assures good value to the customer and the producer and is called the value standard.

READING ASSIGNMENT Function Analysis: The Stepping Stones to Good Value, Snodgrass and Kasi Chapter 16, Section 16.1 Review Chapter 13, Sections 13.5- 13.11 STUDY NOTES There are two major activities for the value specialist, or value engineering team, that must be performed to obtain the optimum recommendation. These activities are analysis and development. Analysis has three important steps. 1. Compare function costs. 2. Compare function attitudes. 3. Evaluate creative ideas. Steps one and two are the ultimate use of functions. Carefully review the function*' cost comparison for the lighted push button switch, Figure 12.13, and assume that your company produces Make A. Note that the Make A team members already knew that their product had the lowest cost. What they didn't know was that the function costs (costs for individual functions) were not the lowest in all cases. Observe, for example, that Make C had the lowest cost for the primary supporting function Assure Convenience. Look for other cost differences. Section 13.7 furnishes function attitude information for the lighted push-button switch. It indicates actions must be taken that were previously not identified. Study the function fault comparison of the automatic clothes washers displayed in Figure 13.17. The product acceptance index indicates that Make A's acceptance is low. The basic function faults for Wring Clothes clearly indicate that Make A's design approach compares unfavorably with Makes B and C. Look for other function comparisons that should concern Make A's value engineering team. Unit 10 discussed the process of creating-by-function, another valuable technique. However, it is often a temptation to go from an open no-judgment experience,

62

Unit 11

as you do in creativity, to a quick selection of ideas with little discussion or analysis. Step three for analysis uses the forms included with this unit, and shown in Chapter 16, as progressive screens to screen out the less feasible ideas. This leaves the most prohising ideas to consider for each selected function from various points of view and against various criteria. Following are the four screens used in the VITAL process: 1. Cull the idea list 2. Feasibility ranking 3. Idea comparison 4. Analysis matrix

Cull Idea List. Because of the process used in brainstorming, many of the generated ideas are clearly unusable. The first screen enables the team to cull these ideas in order to concentrate its efforts on the more promising ones.

"*.

1. Start with the Idea List form (Figure 11-1)for one of the functions. 2. Cross out any unusable ideas. An unusable idea is defined as one that no team member thinks could possibly be made to work. Do not obliterate the idea, it should still be legible beneath the cross-out. 3. Continue the process until all the Idea List forms have been culled for the function. 4. The ideas that are not crossed out are transferred to the Feasibility Ranking form.

Feasibility Ranking. The feasibility ranking evaluates all the surviving ideas with regard to criteria that affect all products, processes, services, etc. (This is not the screen for interjecting managers' opinions).
1. Put the function name at the top of the Feasibility Ranking form (Figure 11-2) for each function created upon. 2. Transfer the ideas that are not crossed out from the Idea List forms to the Feasibility Ranking forms under the same function name. 3. Select a function and address the first idea with respect to the first criterion (State of the Art). 4. On a scale of 1 to 10, assign a number reflecting how well the idea satisfies the c&e$on. 'numbers are favorable, low numbers are unfavorable. Example: Number 10 means "off the shelf" and available right now, while number 1 means "brand new technology"-usually implying a long development time, high uncertainty, and/or high costs. 4 5 . Proceed down the idea column for h s criterion-do not proceed horizontally across the line. When the first sheet is completed, continue with the remaining sheets for the same criterion. 6. When all of the sheets have been completed for this criterion, repeat the process for the remaining criteria on the Feasibility Ranking sheets. Be certain that you proceed down the columns. 7. There is room on the form to add a sixth criterion if the team desires. 8. Total the numbers in the row for each idea and enter at the right in the "Total Ranking" column. 9. Select the 5 to 8 highest ranking ideas for each function and transfer these to the Idea Comparison forms.

~ i ~ h

Unit 11

63

Idea Comparison. The idea comparison subjectively evaluates the advantages and disadvantages of the remaining ideas. 1. Transfer the highest ranking ideas from the Feasibility Ranking forms to the Idea Comparison form (Figure 11-3). Do not group the ideas by function hereafter. If some of the ideas obviously would be combined, then list the combined idea as one complete idea. 2. Address the first idea. The team should identifj all of the advantages relating to that idea and assign a positive number from +1 to +5 where +5 represents a significant advantage. It should be noted that it is not the number of advantages but the importance or desirability of the advantages that should influence the ranking. 3. Proceed down the idea column determining the "advantage" rating for each idea. 4. When the advantages for all of theflea comparison ideas have been determined, then the team will identify and rate the disadvantages for each idea. For disadvantages, the team should assign a negative number from - 1 to -5. Here, - 1 is a minor disadvantage, and -5 is a significantly debilitating disad%i( a vantage. 5. Add the advantage and disadvantage rating for each idea and enter the kesult in the "rank" column. For example, ( + 4) + ( -2) = +2 , the rank. 6. The ideas with the highest + rank are then grouped and transferred to the Analysis Matrix screen. Usually any idea with an idea comparison rank of +2 or greater is transferred. Occasionally +l 's are transferred. Analysis Matrix. At this juncture the team has identified the ideas that will give a significant value improvement. Now it is useful to determine management's possible acceptance of them. 1. Group the ideas with a high idea-comparison rank into packages that represent approaches to sub-parts of the problem. NOTE: Some ideas will still be listed individually, and sometimes the grouping will represent a total proposal. 2. List the idea groups down the left-hand column of the Analysis Matrix form (Figure 11-4). Notice that the first idea listing, PRESENT WAY, is already supplied at the top of%* the column. 3. Identify the criteria that your management normally uses to judge the suitability of a proposal, and list these criteria in the columns across the top of the Analysis Matrix form. 4. Determine the relative importance of each of these criteria and insert this weighting in the "weight of importance" box directly below the appropriate criterion. There are two ways to arrive at this weighting: 1 ) Use a Paired Comparison Analysis form (Figure 11-5) and use the number in the "sum" column as the weighting. 2) Subjectively rate each criterion on a scale of 1 to 10, where 10 is very important and 1 is relatively unimportant. 5. Rate each idea on a scale of +1 to + 4 with regard to the management criteria. NOTE: PRESENT WAY is the first idea on the list. In all of the ratings the PRESENT WAY must be considered as if it is a proposal that is in the same early stage of development as the other ideas on the list.

Unit 11

6. Insert the rating in the upper left-hand triangle of the box intersecting the subject idea row and the desired criterion column. 7. Compute the "weighted rating" for this combination by multiplying the "rating" "with the criterion "weighting." Insert it in the lower right-hand triangle of the box. 8. Repeat this procedure for each successive idea on the sheet, comparing each with the first criterion. 9. After all of the ideas have been rated for the first criterion, repeat the process for each of the remaining criteria. 10. After all the ratings are completed, add the "weighted ratings" for each idea and insert under the "total" column at the right-hand side of the form.
The total for the PRESENT WAY represents a value benchmark against which to measure all the remaining ideas. Ideas with "totals" less than the PRESENT WAY should not be pursued further. The final proposal will be constructed from the ideas that have "totals" higher than the PRESENT WAY, with the most advantageous ideas being those with the highest "totals."
*Yr,

(Written Assigument 11 follows Figure 11 -5.)

, me Wegw of EngIneerln C U ~ I Y B of Y W J ~ ls~~ns~n~dIs~n

Englneerlng Professional Development

Unit 11

CREATIVE PHASE
STUDY NO.

IDEA LIST

FUNCTION
This is the creative phase of the value study. Generate as many ideas as possible for accomplishing the function. Do not evaluate the ideas during this phase.

YOU'RE NOT THROUGH YET. ADD MORE SHEETS FOR MORE IDEAS!
Copyright a 1989 by Board of Regents of the University of Wisconsin Syatem
'?

FORM 1101

Figure 11-1

Idea List Form

Unit 11

. .

Englneerlng Prpfesslonal Development

ANALYSIS PHASE
STUDY NO.
I

FEASIBILITY RANKING

FUNCTION

List the ideas that have, in your judgment, ability to meet the required criteria. Rank each idea from 1 to 10 for these factors.

NOW IS THE TIME TO JUDGE

Copyright cD 1989 by Board of Regents of the University of Wisconsin System

FORM 1102

Figure 11-2 Feasibility Ranking Form

Unit 11
me College of Engheerl C l J n i v e r d yof W..sconsl%d/son Engineering Professional Development

ANALYSIS PHASE
STUDY NO.

' I l u n L Vr
I

COMPARISON
DISADVANTAGES RANK

Select the most feasible ideas or combination of ideas. List them below. List both the advantages and disadvantages of each idea to determine where additional work must be done. IDEA ADVANTAGES

c'

1 '

b
f

KEEP AN OPEN MIND

Copyright 0 1989 by Board of Regenb of the University of Wisconsin System

"FORM 1103

Figure 11-3

Idea Comparison Form

Unit 11
T%eCollege of Englneedn C U n i v e r M y of WisconsI&dIson Englneerlng Professlonel Development

ANALYSIS'PHASE
STUDY NO.
List the best ideas from the Feasibility Ranking and Idea Comparison forms below. Fill in the diagonal headings with the most-desired criteria and, in the boxes below the criteria, rate each (on a scale of 1 to 10 importance to the user. Then, in the upper-left tri record how well (on a sca 1 to 4)* each idea fulfills ea criterion. In the lower-right trianglesirecord the product of the two numbers. Total the products to determine which ideas OF best fit the desired IMPORTANCE criteria.
1

ANALYSIS MATRIX

TOTAL

PRESENT WAY
2

5
4

*Poor 1

SEEK THE BEST- NOT PERFECTION Fair - 2 Good - 3 Excellent - 4

FORM 1104

Copyright @ 1989 by Board o f Regents o f the University o f Wisonsin System

Figure 11-4 Analysis Matrix Form

Englmrlng Pmfeaslonal Development

PAIRED COMPARISON ANALYSIS

ORDER OF IMPORTANCE OF CRITERIA CRITERIA A (Accordin to the Highest core)

PREFERENCE WElGHTlNGS
0 - No difference.

1 - Very slightly more important. 2 - Slightly more important. 3 - Reasonably more important. 4 - Much more important. 5 - Extremely more important.

SCORING
Put t h e SCORE in each box by writing BOTH the LETIER representing the criteripn AND the NUMBER representing the weighting for the choice you feel is most important.
Copyright @ 1989 by Board of Regents of t h e Univmity of Wwconsin Syshm

FORM 1105

70

Unit 11

WRITTEN ASSIGNMENT 11 See the instructions for preparing your written assignment on page 2 of this Study Guide.
1. What is the value standard and why is it important? 2. What activities are completed in analysis-type thinking? 3. Refer to the acceptance (Section 13.7) related to the lighted push button switch. Explain how the value analyst could have recognized which functions caused the relatively low value index for Make A. 4. Mr. Miles uses the phrase "Determining the possible." What do you think that meant to him? 5. Do a complete evaluation of the ideas generated for the three-hole punch in your answer to Question 7 of the last assignment. (In some cases you may not have to do all five functions. Your instructor may indicate on your graded Written Assignment 10 which of the five you are to evaluate. If no indication is given, then evaluate the ideas for all five functions.) Use the evaluation forms provided in the forms packet and send them in with this assignment. 6. Pick a problem from your company suitable for a value team analysis. Explain what areas of expertise you would include on your team and, briefly, why you selected those areas. If some major areas of your organization are not included on your team, explain why you would not include them. 7. For the problem you picked in Question 6 of this assignment, explain how you would involve your management.

THE MANAGEMENT OF VALUE ANALYSIS ACTIVITIES

"'1
\

Section 1 dealt with the techniques and tools of value analysis. Section 2, Units 1 2 through 15, considers types of training for value analysis and the roles of management and the value specialist. Knowledge related to techniques and knowledge related to management are equally important for assuring successful VE programs. While a crude application of VE techniques and tools can at certain times produce results, it is more certain that lack of management understanding will severely cripple any value analysis program. Managing value analysis activities involves two important areas: 1) interpersonal relationships and 2) techniques for encouraging and motivating better value analysis work. These areas are presented in the following units.

THE ROLE OF THE VALUE ENGINEERING SPECIALIST

The value specialist plays an extremely important role in any value analysis work and must know how to proceed as the one person responsible for a project, or as the instructor and coordinator for one or more teams. The qualifications of the value specialist are reviewed in this unit.

READING ASSIGMMENT Excerpts from: "Techniques of Value Analysis and Engineering," L a .Miles -7 Chapters 14 and 15 STUDY NOTES
Definite skills are required to successfully practice value analysis. Certain qualifications have been identified over a period of time. Three are listed and expanded upon in the Miles Excerpts. Understand the importance of each: logic, experience, and developed creative meutal skills. Certain other qualifications have been found to increase the effectiveness of the value specialist. They include: knowledge, imagination, a high degree of initiative, self-organization,a stable personality, a cooperative attitude, a belief in the importance of value, and an understanding of management and decision procedures. Three of the qualifications need discussion beyond that supplied by Miles. Experience is a much-discussed qualification. For instance, can value analysis become a major study in an engineering curriculum? Some say, "Yes." Miles indicates that this is not possible and that five years of industrial experience for value specialists in industry is a prerequisite. It should be assumed that at least the same amount of time would be required for a value specialist who works in the architectural design area in civil engineering design, or in the vast, complicated area of software. A certain amount of value analysis education would be desirable at the undergraduate level. ow ever;^" the ability to successfully conduct value analysis studies, particularly when leading teams, requires experience. Most value specialists start, or are selected, in their 30's or early 40's. Nearly all value specialists have learned value analysis techniques through some form of adult continuing education. Believing in the importance of value would seem to be in the same category as believing in motherhood or the flag, but this is not true. Today's specialization tends to isolate individuals from the total picture on which value is determined. People in cost reduction can become obsessed with meeting a certain percentage goal regardless of how it affects value. This tendency is a particular danger when the attitudes of product users, voters, or building occupants are not thoroughly understood. Miles points out the need for a firm belief in what value analysis can do to avoid frustration. It must really be an article of faith that the value analysis system with its various tools will accomplish the objectives regardless of the difficulties. Finally, an understanding of management and its decision processes is mandatory. The inexperienced person tends to feel finding the solution is all that is necessary and

74

Unit 12

that management will approve and implement the recommendations. Nothing can be further from real life situations. To be successful, the value specialist must make a management study. Where is the strongest support? Which managers might be an obdacle? Are the projects that are recommended really part of management's overall plans, or are they merely exercises in a side issue? William Halal, in his book The New Capitalism, traces the evolution of three roles in human history: management, labor, and the specialist. Figure 12-1 summarizes his views on the evolution of leadership style, the values produced in society and individuals by changing cultures, and the evolution of technology. It is important to know where the management of an organization fits on the evolutionary path. But be aware there may be a mixture of Halal's leadership styles in organizations today. The main point to deduce is the increasingly important role the specialist plays in the working relationship with the top manager. A well-trained and competent value specialist fits the right-hand side in the chart of Figure 12-1* better than most types of specialists.

/
1

Agrarian Society (7000 B.C.)

Industrial Society (1850 A.D.)

Service Society (1950 A.D.)

Knowledge Society (2000 A.D.)

..- .

Stage of Evolution

Autocracy

Authority

Human Relations

Participation

I
Survival
Mawrialism

Leadership Style

I
Self-Esteem
Idealism

Security
>

Affiliation

r-

Cultural Values

Agriculture

Manufacturing

1 Simple
I

t'

Social Organization Information Systems

Complex
--

Technological Base Figure 12-1 Historical Trends and Leadership Styles

Five essentials for training are listed in the Miles Excerpts. Apply them to your particular organization. He outlines a 40-hour training seminar in Section 14-3. The

* Fig. 12-1 is adapted, with the permission of John Wiley & Sons, Inc., from The New Capitalism by William E. Halal. Copyright 01986 by John Wiley & Sons, Inc.

Unit 12

75

training seminar is the most involved and tedious step in preparing to become a value specialist. Plan ahead to obtain the needed seminar experience. * The Department of Engineering Professional Development introduced the Value Engineering Specialist diploma program in 1978. One of the required courses is this correspondence course you are presently taking. Figure 12-2 lists the generic course titles and continuing education units (CEUs) required for the diploma. (If you want more details, include a request with this unit's written assignment when you send it in.) Chapter 15 expands into the work content. Four basic classes of value analysis work are described: integration, value appraisal and/or product evaluation, value consultation, and value training. VALUE ENGINEERING SPFIALIST DIPLOMA PROGRAM Industry and Service COURSE CEU*

Required Courses (36.6 CEU)

ME C612-A361 An Introduction to VA and VE for Industries, Services, and Governmental Agencies Using Value Engineering to Reduce Costs and Develop Superior Products VE I Value Analysis/Value Engineering VE 11, Module I Customer Oriented Product Development VE 11, Module I1 Cost Oriented Product Design Individual Value Analysis/Value Engineering Project Correspondence Course Workshop Workshop Seminar/Workshop Workshop Independent Study 5 1.6 3.4 10 15

Elective Courses (6 CEU)

Course(s) selected by candidate.

Diploma Examination (2.4 CEU)

Examination covering above topics. Examination 2.4

TOTAL CEU REQUIREMENT 45

* Each CEU (Continuing Education Unit) indicates 10 hours of learning time.

Figure 12-2 UW -Madison VE Specialist Diploma Program

* The 40-hour workshop offered by the Department of Engineering Professional Development, VE I, follows the Miles outline quite closely. Also, it is approved by the certification board of SAVE (Society of American Value Engineers) as one of the requirements for a certified value specialist. If you want more details, include a request with this unit's written assignment when you send it in.

76

Unit 12

WRITTEN ASSIGNMENT 12 See the instructions for preparing your written assignment on page 2 of this Study Guide.
1. In accordance with the principles outlined, what kind of knowledge is required to conduct the study on the three-hole punch? 2. According to Mr. Miles, what experience is required for the value specialist? 3. What are the various skills that must be developed by a value specialist? 4. What personality and attitude traits does a value specialist require? 5. What does this unit say about how to recognize a creative person? 6. Why is the belief in the importance of value essential? 7. List the five essentials for training and list some specific areas of your organization that would apply to each. 8. Identify how many hours of the 40-hour training seminar in Section 14-3 are applied to each one of the job plan steps. NOTE:You must account for all 40 hours.

*-.

INTERACTION OF THE ORGANIZATION WITH VALUE ENGINEERING

The understanding of various interactions among parts of an organization before, during, and after a value engineering study is essential. The positive contributions of various parts of an organizadon assure success. A successful value analysis project c' brings credit to all involved.

READING ASSIGNMENT Excerptsfrom: "Techniques of Value Analysis and Engineering," L. Miles '"c. Chapter 12 "e Review Chapter 15

9.

STUDY NOTES Throughout the Miles Excerpts, emphasis is placed on industrial organizations because this was L.D. Miles' area of experience and background. If you are in other types of organizations such as government agencies, architectural or engineering design firms, service organizations, and so forth, look for similarities and identify the part of your organization that performs a task similar to a task discussed by Miles. Note the principal objectives of the various parts of the organization as indicated in Chapter 12. They emphasize the specialization within organizations today. It certainly seems to be increasing as we look into the future. Note also how value engineering often relates to one or more objectives of the department, but not to all. Accounting's objective to accumulate figures for profit and loss accounting for tax and business purposes does not involve value analysis. However, its objective of cost and income projection for decision-making is very much involved in value analysis. The emphasis on obtaining costs, especially for value engineering work, is important. Meaningful costs are often '% r. difficult to obtain. The cost format used in Unit 7 is an example of one designed for value work. The comparison of cost reduction activities with value engineering should be carefully read and understood. A number of years ago, a department general manager of a large corporation was under considerable pressure to cost-reduce one of the products in his department-an automatic clothes washer. Various teams were organized to suggest various ways to reduce costs. One of the team suggestions was to eliminate one of the two coats of paint that was applied to the washing machine. The technical people tried to explain that each coat of paint had a particular function. The so-called primer coat, which the team wanted to eliminate, was applied to prevent the steel from rusting and also to provide a surface to which the top coat would adhere. The top coat provided the high-gloss finish. Either the technical people were not able to adequately describe what the two coats did, or perhaps the general manager was under such pressure from his top management that he thought the savings achieved by eliminating the primer coat was worth the risk. Whatever the reason, the order to eliminate the primer coat

78

Unit 13

%+.

was given, and for the next four to six months washing machines were produced with only the finish coat of paint applied. Since automatic washing machines are subjected to a high degree of humidity and moisture, the results were disastrous. Nearly every washing machine had to be taken back because of peeling paint and rusting. This decision to obtain a cost reduction had a severely adverse effect on the reputation of the corporation. It definitely affected the future of the general manager. It was a costly lesson which indicated that cost reductions must be made with full knowledge of what the various cost elements do for the customer. Confusion continues to exist between cost reduction and value engineering. You must understand the differences between the two techniques. Section 12-4 on engineering again brings out special interests. The responsibilities of engineering for dependability and reliability are often reflected in the high costs of these areas. You have already seen the way various manufacturing operations affect cost. The case study in Section 12-5 of the Miles Excerpts emphasizes the constant necessity for understanding make-or-buy decisions. Purchasing was the area in which value analysis started. Section 12-7 has considerable detailed information that may or may not be applicable to your organization. Marketing (Section 12-9) has seldom been involved in value analysis. However, there are many opportunities for cooperative efforts in marketing in customer-oriented value engineering. Go back and review Units 3 and 9 to refresh your memory on marketing research. The beginning of Chapter 15 identifies four classes of value engineering work content. The last section of Chapter 15 indicates how these apply to various parts of an organization.

WRITTEN ASSIGNMENT 13 See the instructions for preparing your written assignment on page 2 of this Study Guide.

1. Name at least four different, important factors in the relationship of value analysis
2. to accounting. Name the categories of opportunities,mentioned in this unit, used in determining appropriate sales and prices. With whom does the value specialist work in each of the three categories of opp&tyqities listed in Question 21 In which specific areas of study does Mr. Miles say significant cost savings can occur? List four of the elements that differenti?te cost reduction from value analysis. What does this unit say is engineering's primary responsibility in an industrial product? Name five VA techniques important in the purchasing section. What are the important factors in the relationship of value analysis to marketing? If you wereto do a value study in your organization on some specific product (or process), exj?lain some of the things you would do in each of the basic classes of value work. NOTE: Use the same problem selected in Question 6 of Unit 11, if applicable.

3.
4.
5. 6.

7. 8.

9.

MANAGEMENT'S ROLE IN VALUE ENGINEERING

The tools and techniques of value analysis are important in determining solutions, and management's understanding and support determines the degree of implementation and overall success of the value analysis program. The elements of a successful value engineering program, as they concern management, deal primarily with interactions, personalities, and the politics of the orgpization.

READING ASSIGNMENT Excerpts from: "Techniquesof Value Analysis and Engineering," L. D. Miles -4 Chapters 6 and 11 , Chapter 16, Sections 16-2 and 16-3

Function Analysis: The Stepping Stones to Good Value, Snodgrass and Kasi Chapter 16, Section 16.2

STUDY NOTES Value engineering can be used to solve management problems. Chapter 6 indicates the various steps and considerations involved. The emphasis is on the problems of management per se as contrasted to the products or services the organization produces. There are steps in establishing an agreement for setting the problem which may seem elementary at first reading, but are essential to obtain a solution. The three stages are very similar to the job plan approach. Breaking a problem down into parts makes it easier to identlfy each different part and to work for individual solutions instead of initially trying to find one solution for the problem as a whole. An interesting case study is given in Chapter 6. Five additional situations are presented in Section 6-3. Try the three-step approach on each of these five situations. The emphasis in Chapter 11 of the Miles Excerpts is on management's role in implementing the recommendations generated in a value study. The two steps in achiev--. ing a value solution are 1) obtaining the value recommendation through the tools and techniques you studied in the first section of this correspondence course and 2) obtaining management's support in implementing the recommendations. Probably more value analysis programs have failed because of management's inability to cope with the recommendations and organizational problems than for any other reason. The time needed to adjust to, or accept, a new or different solution appears to be directly related to the degree of difference between the solution and the present method. Miles discusses various reasons for this. At the head of the list is the matter of personal risk. It is a real factor and should be thoroughly understood by the value specialist and the team members. Gains must be commensurate with the risk in order for management to consider a value recommendation. Injurying or destroying the reputation of the decision-makers is a serious factor. A value research study on compact station wagons was carried out in the middle 1960's

80

Unit 14

for a major automobile manufacturer. The feeling at that time was that the compact car was a fad, and the public would soon return to full-sized cars. The results of the study, however, indicated that the compact car, when properly designed for the customer's needs, was a highly acceptable vehicle. Obviously then, the results were completely opposite to the popular beliefs. Even though time proved the correctness of the results, the study damaged the reputation of the individual who sponsored it. It was even labeled "Miller's Follyw-holding up the individual's name to ridicule. Note the various types of obstacles that can adversely affect the implementation of a value analysis recommendation. Internal bias caused by entrenched attitudes within organizations can cause deviations from good value. That is, it can gradually add to the cost, or decrease the performance or overall acceptance, of the product. Miles lists some important factors that cause this: subjective judgments, accountability for sales or performance as contrasted to profits, cause-and-effect relationships, feelings and emotions of organization members, and anti-new perspectives. Several case studies are presented that demonstrate factors already discussed. In Section 11-8, understand the 17 points on *+."management beliefs" which can assist in implementing value recommendations. The final results are reviewed for the case histories used in various earlier chapters of Function Analysis: The Stepping Stones to Good Value. The influence of management is clearly shown. Notice that where the implementation was incomplete or nonexistent, important planning elements were missing. Again, think of your own organization and determine where problems could arise in carrying out a properly planned value engineering study.

WRITTEN ASSIGNMENT 14
See the instructions for preparing your written assignment on page 2 of this Study Guide. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. How good must management's decisions be? What is the first step in setting the problem, or mind tuning? What is the purpose and result of the second problem-setting step? What does the third problem-setting step do? R$er to the company problem you selected in Unit 11, Question 6, and indicate h o ~ % uwould "set" the problem. What two types of work are required to improve value? Why is it difficult to create a constructive decision-making environment? List the situations where decisions resdt in extra cost. List the five most important of the "Management Beliefs that Support Competitive Value Decisions" from the list of 17 found in Section 11-8 of the Miles Excerpts. List the five most important of the 25 items of the "Tests of Work Being Done" questionnaire found in Section 16-3 of the Miles Excerpts. List the fivebresultsaccelerators emphasized in this unit.

VALUE ENGINEERING AS A CAREER S O M E DO'S AND DON'T'S

Value engineering specialists are becoming more in demand as world competition for corporations and tight government agency budgets become commonplace. Units 1214 have addressed some of the factors involved in training, in interrelationships,and in management's role. A large part of the hccess or failure of value engineering studies comes down to the degree of motivation for the VE specialist and the organization. Many of these motivational points were covered in Unit 14. This final unit will address some of the most important motivational factors in terms of how they affect the value -sJ specialist, the project, and the organization.
-7

READING ASSIGNMENT Function Analysis: The Stepping Stones to Good Value, Snodgrass and Kasi Chapter 16, Section 16.3
STUDY NOTES Every professional faces career problems, and value specialists are no exception. Many of the problems involve change-change in a product design or in an organization's procedure. The very techniques that the value specialist uses are strange to the "first timers." Converting a structure built of material containing familiar items such as materials, labor, and overhead to verblnoun descriptors called functions often causes trauma. In fact, becoming familiar with the verbfnoun form, the two types of fast diagramming, and allocation of cost does not come easily. But with diligence it does come, and with it the rewards for which value engineering is known. One of the top value specialists in the United States took a course requiring the Ie'arning of customer-oriented FAST, a departure from the usual technically-oriented FAST with which he was familiar. This individual became so emotional that he coul7b not continue with the team. Yet, the remaining team members, learning the technique for the first time, followed the rules to a satisfactory result. Every value specialist must learn to cope with such situations and realize that often only time can help some individuals. Often a dominant team member will dem'and that the team stop "wasting time" on "silly" verb/noun functions and get to the important activity-creativity. Giving in to such an individual spells disaster, because the poor results from such a study will reflect back on the value specialist. Following the step-by-stepjob plan from the information phase through the various screens of the evaluation phase can present real questioning regarding theuse of the team's time. Most team members are action-oriented, "get-thejob-done" types, and it is difficult not to jump ahead when one sees a potential solution. This can become a problem. An organization can take months trying to decide to do a value engisleering study, but once management makes that decision, instank action is desired. However, gathering the proper information takes time, while proceediug without it creates another major pitfall.

82

Unit 15

,,,

Selecting the team members is often another obstacle the value specialist must face. Successful projects are always the output of the right individuals following the proper job plan and using the correct data. Anything less detracts, at the very least, from the potential output and often creates a bad impression of value engineering within the organization. It definitely injures the reputation of the value specialist. Developing creative thinking poses another problem in motivation. Individuals working on the same product for long periods of time develop ways of thinking that are difficult to change. The dilemma the specialist faces is that usually these same individuals are the persons who should be on the project team. Again, time is the answer. Allow enough time to let creating-by-functionsproduce better and better answers. Always make positive suggestions. Never criticize. Most importantly, remember that you are using a system that works. Refinement has been made over many years; ideas have been borrowed from other approaches. Never lose faith, for the system is the solution to the most complex problem. The motivations for becoming a value specialist are as great as, or greater than, the problems just discussed. There is no similar opportunity in an organization to learn and understand how things get done. What makes the organization work? Where do the problem areas exist? For many, their time as value specialists will be a training period, a period for upper management to observe their skills in handling people as well as problems and deciding that they are just the right candidates for a higher level job. Equally important, value specialists enter upper management as specialists and they are recognized on an equal basis with their peers who are responsible for organizations. There are two reasons for this. First, the unique technique of value engineering tackles a total product and points out the specific problems. Second, it pushes the team members toward new technologies and approaches, such as flexible manufacturing systems (FMS), Taguchi's experimental design for robust products, special market segments or marketing techniques, new costing systems,just-in-time (JIT) operations, etc. Go back and review the Halal diagram in Unit 12 and understand that you are training for a key role for future organizations, Review Section 16.3 in your text for further evidence that the techniques of the value specialist and the VE system provide answers to several of the "megatrends" outlined by John ~aisbitt,'weapons against many (ef the "sins" identified by W. Edwards erni in^,^ and procedures for following the majo* of Peters' and waterman's3 eight basic principles. Finally, the successful organization, corporate or government, has the ability to work toward common objectives that are the right objectives. Carefully read the final paragraph in the text, Functional Analysis: Stepping Stones to Good Value, for it can be the key element in your organization's sdccess.

WRITTEN ASSIGNMENT 15
See the instructions for preparing your written assignment on page 2 of this Study Guide. This is the final assignment in this course on value analysis. Up to now we have asked you to learn the tools, techniques, and activities of value analysis. In this assignment, we want you to t h i n k about the various aspects of how and why you may or

Megatrends: Ten New Directions .Transforming our Lives Quality, Productivity and Competitive Positions In Search of Excellence

Unit 15

83

may not be influenced by using value analysis. Please respond to each of the following question by writing a brief, concise essay-please do not be wordy. There are no "correct" answers, just good, well-considered, thoughtful answers. NOTE: Read all of the questions before answering any of them.

1. Explain why and how you will (or will not) use value analysis on your job. 2. Explain what additional things you will be doing to improve your value analysis skills. (If your answer is nothing, then explain what additibfial things you are going to do to improve your job skills.) Discuss some roadblocks you regularly encounter on your job and how you think you might overcome them in the future.

UNIVERSITY OF WISCONSIN-EXTENSION /INDEPENDENT STUDY

INSTRUCTIONS FOR SUPERVISED FINAL EXAMINATION (CEU COURSE)

Please read the following instructions very carefully if you are required to take this examination. OBTAINING THE EXAMINATION AU required assignments and examinations up to the final examination must be completed and submitted before you will be allowed to take this examination. Sturjl Exam Offree, 432 North To obtain the exam, fill out the form below, detach only the form, and send it to Indepe~dent Lake Street, Madison, WI 53706. The exam and exam booklet will be supplied directly to the approved proctor, and you will be notified when it has been sent. You must then make arrangements with the proctor to take the exam within four weeks from the date the exam was sent. If you have a disability and would like to make special arrangements,please indicate your needs on a separate piece of paper and attach it to the form. If you are in the Madison area, the Independent Study Exam Office should be your chosen proctor, unless special circumstances such as location or scheduling prevent it; check the b x* on the request form. You will be notified when your exam is ready and can make arrangements to take it by calling (608) 62-8661.

QUALIFIED PROCTORS FOR CEU COURSE EXAMS This examination must be taken under the supervision of a proctor; the responsibility for obtaining a proctor rests with you. Generally, proctors do not charge for this service. In all cases the choice of a proctor is subject tqp proval by the academic department offering the course, and the exam will be sent only to the proctor's work (official) ddress, which is to be used on the exam request form. Acceptable proctors include university or college registrars, deans, counselors, or professors; high school principals or counselors; directors of educational services at universities, correctional institutions, or within the armed services; certified librarians in a supervisory position; or, for most engineering and technical courses, your work supervisor; or the delegated official of a university testing center. If you have to take the exam in a foreign country, you may request, as your proctor, a local director of educational services or an officer of the U.S. Embassy or Consulate.

REQUEST FOR FINAL EXAMINATION (CEU COURSE)

PLEASE PRJNT INFORMATION
Date you submitted this form Course in which exam is desired ME C612-A361 Intro to VANE for Industries, Services, and Governmental Agencies
Course number and C o u m name

Student's Name Address

Strcet/Box

Phone (

'*

Suggested proctor* (Be sure to make arrangements with the proctor before submitting this form.) Proctor's qualitications for acceptability (see above list) Proctor's Name and Title Address
Proctor's Institution
Street/Box

Phone (

Check here, instead of suggesting a proctor, if taking the exam at the Independent Study Exam Office in Madison. Do not send this form with a written assignment. Mail it separately.

To be detaclted and mailed to

Independent Study University of Wisconsin-Extension 432 North Lake Street Madison, W153706 If you wish to have a Transcript issued at the successful completion of your course, complete and mail the following form. Your Transcript will indicate college credits, high school credits, continuing education units (CEUs), or W A J 3 credits that you have earned through satisfactory completion of a University of Wisconsin-Extension Independent Study course. College credits earned will be transferred either to the Office of Admissions or the Records Office of a University of Wisconsin campus or to another educational institution upon receipt of the following form. Transcripts are automatically sent to Wisconsin high schools for students who have obtained the signed approval of a school official on their Application for E~ollInent form, so if you are one of these students, you do not have to send us this form.

+I

.\

Course for which Transcript is desired ME C612-A361 Intro to VA/VE for Industries, Services, and Governmental Agencie
Course number and Course name

Date enrolled Student's Name

Date of course completion Date

lfanscript to be sent to

Address
Institution

3ach Thnscript costs $3.00 which must accompany this request. Enclose check or money order, payable to UW-Extension. (Cost subject to change; see Student Handbook.)
-

Do not send this form with a written assignment. Mail it separately.

* To have credits earned during a summer or vacation period transferred to the Office of Admissions or the Records Office of a University of Wisconsin campus in time for registration, you must complete a l l work, including the final examination, at least two weeks before the opening of a semester. If credits have not been transferred by the time you make out your semester program, you may ask your adviser to telephone lndependent Study at (608) 262-8662 to verify course completions.

REQUEST FOR CERTIFICATE OF COMPLETION

To be detached and mailed to Independent Study University of Wisconsin-Extension 432 North Lake Street Madison, WI 53706

A Certificate of Completion must be requested for any successfully completed course except courses in business or economics. A course is considered successfully completed when you have satisfactorily fulfilled all requirements for the course. Complete and mail the following form to obtain one certificate at no cost. However, each additional certificate you request will cost $1.00. Just enclose a check or money order payable to UW-Extension to cover the cost of any additional certificates. (Cost subject to chan?; see Student Handbook.)
One Certificate of Completion is automatically issued for any successfully completed business or economics course. Do not mail in this request form for business or economics courses unless you require additional certificates. Enclose payment of $1.00 for each business or economics course certificate requested with this form.

81: ,
Course for which certificate is desired ME C612-A361 Intro to VA/VE for Industries, Services, and Governmental Agenciec
Course number and Course name

Date enrolled Student's Name Address

Streeflox

Date of course completion Date

City

State

ZIP

(Country)

Certificate to be sent to (if different from above) Address

Name

City

State

ZIP

(Country)

Do not send this form with a written assignment. Mail it separately.

WHAT'S NEXT?
You are one of more than 10,000 students currently enrolled in University of Wisconsin-Extension's Independent Study Program. Now, as you finish this course, why not explore the many opportunities offered through this program? Over 450 courses are available in such diverse fields as foreign languages, business, mathematics, engineering, history, art, English, chemistry, physics, philosophy, social studies, and economics.

Credit. You can take university-level courses toward a degree, high school courses for credit toward a diploma, courses earning Continuing Education Units (CEUs) for professional advancement, and courses for credit in the Wisconsin Vocational, Technical, and Adult Education System. Some of these courses include audiotapes for enhanced learning and educational enrichment. Directed Study. Some of our academic departments at the University of Wisconsin-such as French, History, and Spanish-offer a directed-study option, either for iversity credit or for continuing education units. These are individualized courses designed to serve your special eeds. For hrther information, check our Independent Study Catalog. Arrangements must be made with the academic department before you register for a directed-study course. Certificate Programs. You may also be interested in one of our certificate programs. The General Studies Certificate recognizes a student's accomplishment in compleling 30 semester credits in the humqities, social sciences, and other college credit fields. The Certificate of Achievement recognizes a student's accomp%$unent in completing 30 semester credits of the student's choice. Certificate programs are also offered by the Business and Economic unit in the areas of general business, small business, accounting, purchasing, and personnel management. No special application process is required. You can even sign up after you've completed one or more courses. Personal Enrichment. Or if you just want to stretch mentally, to learn for the joy of learning, you can pick arty course that appeals to you and take it just because you've always wanted to learn more about the subject. Our Independent Study Catalog is filled with a wide range of learning opportunities.

ADDITIONAL INFORMATION To obtain a free catalog, or for advice on making a learning decision, write the Adviser to Students 209 Extension Building 432 North Lake Street Madison, WI 53706 If you'd like to stop by, come anytime from 7:45 to 11:45 a.m. or from 12:30 to 4:30 p.m., Monday through Friday. Please send me a copy of your Independent Study catalog.

1 Name
Address
Smetpox

Date

II / C]

City

State

ZIP

(country)

I am interested in the following: ~nivenity credit Certificate Programs High School Credit
VTAE Credit

I
I

Continuing Education Directed Study

Professional Development

Do not send this form with a written assignment. Mail it separately.